- Argo Blockchain has successfully repaid a $35 million loan to Galaxy Digital, which was borrowed to avoid bankruptcy in 2022 during a challenging crypto bear market.
- The repayment was managed without impacting Argo’s mining efficiency and hashrate.
- CEO Thomas Chippas highlighted this as a noteworthy milestone for Argo.
Argo Blockchain repays $35 million loan to Galaxy Digital without compromising mining operations.
Strategic Moves by Argo Blockchain
Argo Blockchain took several strategic steps to evade financial distress, including a multi-part agreement with Galaxy Digital in December 2022. Apart from securing a $35 million loan, the company’s strategic moves included selling its Helios Bitcoin mining facility in Texas for $65 million and leasing it back to maintain its mining operations. Notably, the loan was backed by a sizable number of mining machines and equipment housed in Argo’s Canadian data centers.
Operational Enhancements
By December 2023, Argo Blockchain achieved a significant upgrade in its operational capabilities, with its total hashrate reaching 2.7 exahash per second. In July, Argo disclosed that it was mining an average of 1.5 Bitcoin each day, culminating in a total of 48 Bitcoin for the month. This improvement follows the deployment of around 2,750 BlockMiner machines from ePIC Blockchain Technologies during the third quarter of 2023, aimed at bolstering the company’s mining output and profitability.
Conclusion
Argo Blockchain’s timely repayment of its $35 million debt to Galaxy Digital marks a crucial juncture for the company. By enhancing its mining capabilities and maintaining efficient operations, Argo has not only alleviated its financial burdens but has also positioned itself favorably for future growth in the competitive cryptocurrency mining landscape.
