Argo Blockchain has successfully repaid the $35 million loan it secured from Galaxy Digital in 2022, according to a company filing on August 12. The loan had been critical in helping Argo avoid bankruptcy during the severe crypto market downturn of that year.
CEO Thomas Chippas described the repayment as a “significant milestone for Argo,” achieved “without any meaningful impact to Argo’s hashrate.” The hashrate is a measure of the computational power used in cryptocurrency mining and is crucial in determining how much Bitcoin a miner can earn.
In December 2022, Argo escaped potential bankruptcy through a strategic agreement with Galaxy Digital, which involved selling its Helios Bitcoin mining facility in Dickens County, Texas, for $65 million and securing a $35-million loan for debt refinancing.
The loan was secured by Argo’s “23,619 Bitmain S19J Pro mining machines” operating at Helios and other machines located at Argo’s Canadian data centers. Argo also agreed to lease back space at Helios to continue operating its Bitcoin mining equipment.
The total hashrate for the Bitcoin network is currently 677.43 EH/s
Since the agreement, Argo has continued to enhance its mining operations. According to its 2023 annual report, the company deployed approximately 2,750 BlockMiner machines from ePIC Blockchain Technologies in the third quarter of 2023.
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By the end of 2023, Argo’s hashrate reached 2.7 exahashes per second (EH/s), contributing to the total Bitcoin network hashrate of 677.43 EH/s, as reported by CoinWarz. In July, Argo mined an average of 1.5 BTC per day, totaling 48 BTC for the month.
On August 1, Galaxy Digital announced plans to expand and monetize the high-voltage power capacity at its Helios data center in Dickens County, Texas. According to Benchmark analyst Mark Palmer, Helios is well-positioned to benefit from the expected increase in demand for power from artificial intelligence and high-performance computing (HPC) projects.
Cre: cointelegraph
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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