Argo sold 887 Bitcoin in July. Most of the revenue was used to pay Galaxy Digital’s outstanding balance down to $6.72million. This figure was $22 million at month’s end. Despite the fact that it had to reduce peak power demand in Texas due to extreme heat, the company still mined 22.4% more Bitcoin in July.
Argo, a bitcoin miner, mined 22.4% less bitcoin in July than June. It also sold 887 BTC during July at an average price $22,670 per coin.
A majority of the company’s revenues were used to reduce its $6.72 million bitcoin-backed loan with Galaxy Digital. According to the company’s first quarter results , Argo had $58.6 millions in credit as of March 31, 2022.
The $45,000,000 loan it took from Galaxy last fiscal year to finance Texas facility was not enough. In March, the company received a $26.66 million loan through NYDIG.
“That’s something we have been deleveraging over the past three, four and five months,” CEO Peter Wall said in a video presentation Friday. The company made this strategic decision to ensure that there is no future risk to bitcoin’s price dropping.
Argo sold 637 BTC last June. It also used the proceeds for debt repayment, bringing the Galaxy outstanding balance to $22million at the end June. Argo had 1,295 BTC as of 31 July, 227 of which were BTC equivalents.
Argo’s quarterly results revealed that Argo mined 22.4% more Bitcoin in July (219 BTC), although it, like other Texas miners, reduced power during extreme heat.
The company didn’t disclose how much power it needed to reduce. It claimed that Texas miners had collectively reduced peak demand by more than 1,000 megawatts. Rival Riot claimed this week that it had cut power usage by 11,717 megawatts ( , which earned it $9.5million in state power credits). Core Scientific today reported that it reduced 8157 megawatt-hours in July.
Argo stated that the energy costs at Helios, its Texas flagship site, were higher than expected. Wall explained that the reason is because the current PPA (a power purchase arrangement) is tied to spot prices and index prices. Power prices are very high. It’s similar to signing a mortgage at high interest rates. It’s best to wait for interest rates to drop.
After power rates fall closer to the end-of-the summer and into September, the CEO expects that the company can negotiate a better PPA at an affordable price.
In July, Argo’s margin was 37% Wall stated that while it was not a large margin, it is still within our reach and should improve in the future.