In July, Argo mined 22.4% more bitcoins than in June, and sold 887 BTC
Bitcoin miner Argo produced 22.4% more bitcoins in July compared to June. In July, 887 BTC were sold at an average price of $22,670 per coin.
The company used most of these revenues to reduce the bitcoin-backed loan from Galaxy Digital to $6.72 million. According to the results of the first quarter, as of March 31, 2022, Argo had a loan of $58.6 million.
In addition to the $45 million it borrowed from Galaxy last year to help finance its Texas plant, the company signed an additional $26.66 million loan from NYDIG in March this year.
"This is something we've been giving up for the last three, four, five months," CEO Peter Wall said in a video presentation on Friday. "It was a strategic decision by the company to make sure we don't take any risks in the future if bitcoin falls."
In June, Argo sold 637 BTC. As in the past month, the miner used the proceeds to repay the debt, as a result of which his outstanding balance with Galaxy was reduced to $ 22 million at the end of June. As of July 31, Argo had 1,295 BTC, of which 227 were BTC equivalents.
Shutdown in Texas
Argo's quarterly results also showed that the company produced 22.4% more bitcoins (219 BTC) in July, although, like other miners in Texas, it turned off equipment during periods of extreme heat.
The company did not disclose exactly how much energy it had to cut. But collectively, Texas miners reduced consumption by more than 1,000 megawatts during peak demand. Rival Riot said this week that it cut electricity by 11,717 megawatt-hours in July (which earned it $9.5 million in electricity loans from the state). Core Scientific reported today that it has cut 8,157 megawatt hours during the month.
As for Argo, the company said that electricity costs at Helios - its flagship facility in Texas - were higher than expected.
"This is because we currently have a PPA (electricity purchase agreement), which is linked to index prices, spot prices," Wall said. "Electricity prices are very high. It's like signing a mortgage loan when interest rates are very high. You have to wait for them to go down."
The CEO hopes that the company will be able to negotiate the best PPA at a fixed price after electricity tariffs decrease towards the end of summer, in September.
The profitability of Argo in July was 37%.
"A small margin is not what we want, and that should change in the future," Wall said.
https://coin-signal.com/cryptonews/in-july-argo-mined-22-4-more-bitcoins-than-in-june-and-sold-887-btc/
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