Argo Blockchain cuts 2022 debt by half, down to $75M

The mining company, which has been one of a number of f

While the company had warned that it faced the reality of bankruptcy in late 2022, its 2023 interim half year results indicate that it plans to increase its total hashrate capacity to 2.8 EH/s by deploying some 1,628 BlockMiners to its Quebec-based mining facilities.

Argo also reported that it was in advanced discussions to sell “certain non-core assets” and was exploring other options to reduce its overall debt.

Argo board chairman Matthew Shaw highlighted a “transformational series of transactions” with Galaxy Digital in which it sold its Helios mining facility and property for $65 million in December 2022. Argo then refinanced a new $35 million, three-year asset backed loan with Galaxy.

“The transactions reduced total indebtedness by $41 million and allowed Argo to simplify its operating structure.”

Shaw added that Argo’s ability to maintain a fleet of more than 27,000 miners was crucial to its ongoing operations, with some 23,600 Bitmain S19J Pro operating at the Helios site through an ongoing hosting agreement with Galaxy.

Mid year financials indicate that embattled cryptocurrency mining firm Argo Blockchain has significantly reduced its debts and cut half year net losses in comparison to 2022.

Argo had previously warned that it was facing dire financial circumstances  in late 2022 before it struck a deal with Galaxy for its Helios facility. In the months following the closure of the deal, Argo’s former CEO Peter Wall announced his resignation from the company. 

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