Argo Blockchain Mining 25% Less Bitcoin Due to Winter Storm in Helios

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Publicly traded bitcoin (BTC) mining company Argo Blockchain saw a significant drop in mining activity in December due to a winter storm in Texas.

On January 11, Argo released its first operational update since selling its flagship Helios mining facility to Mike Novogratz’s Galaxy Digital. The company said it mined 147 Bitcoin or BTC equivalents in December, compared to 198 BTC in November 2022.

As of December 31, Argo held 141 BTC, with its December mining revenue of $2.49 million, the company said. Argos’ total debt was about $79 million and its bank balance was about $20 million.

According to the announcement, the decrease in the amount of BTC mined was primarily due to Argo’s reduced mining operations at Helios in response to a major winter storm in Texas.

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In late December, the United States Department of Energy declared a power emergency in Texas, citing a power shortage due to the impact of harsh winter weather. Amid a massive temperature drop accompanied by high winds, demand on the Texas power grid hit an all-time winter peak of more than 74,000 megawatts (MW).

Argo CEO Peter Wall pointed out that the company’s mining results were below expectations as the company had to reduce power consumption on the grid due to extreme weather conditions.

Related: Bitcoin Miners See Mixed Success in Battling Debt-Fueled Boom Crisis

During the winter storm, Argo joined other Texas Bitcoin miners in reducing power consumption by approximately 1,500 MW, Wall said, adding:

After the winter storm and associated freezing temperatures subsided, we safely brought Helios back online and resumed operations.

Wall mentioned that Argo ultimately decided to sell its Helios facility to Galaxy Digital, announcing the $65 million deal on Dec. 28. The transaction was intended to reduce Argos’ total debt by $41 million and improve liquidity and operating structure.

Despite the sale, Argo will continue to operate the Galaxy-owned Helios facility. Argos’ total hashrate capacity continues to be 2.5 exahashes per second, the announcement notes.

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