The BTC production of Argo Blockchain was paralyzed by a winter storm in December

The BTC production of Argo Blockchain was paralyzed by a winter storm in December

The Bitcoin mining giant-ARGO Blockchain-dismantled 147 BTC in December, about 25 % less than the production volume registered in November.

The main reason for the decline was a massive winter storm that was looking for the United States last month and negatively influenced the company in Dickens County, Texas.

The effect of the cyclons

The heavy snowstorm that searched for a large part of the states around Christmas caused Argo Blockchain to join other Texas BTC mountain people in order to reduce power consumption. With a reduced production performance, the company reduced 147 Bitcoin (worth around $ 2.6 million at current prices) compared to 198 Bitcoin in November.

"While our mining results in December were lower than expected, the main reason was the winter storm, which caused us to restrict the company at Helios. We made this decision not only to reduce electricity consumption on the Internet, but also, but also to the needs of the local community and the safety of our Helios employees prioritize.

After the winter storm and the associated subsequent temperatures had subsided, we brought Helios to the net again and resumed the operation, ”said CEO Peter Wall.

in Lone Star State, which rarely experiences cold weather, the temperatures around the Christmas holidays fell below freezing. The local power grid had trouble dealing with the challenge, and the US Ministry of Energy explained an energy emergency in the region. The climate stabilized in the following days, so that the domestic BTC miners were able to restore their previous production capacity.

Argo Blockchain announced that it held 141 BTC at the end of December 2022, its total debt was almost $ 80 million, while his bank balance was around $ 20 million.

The deal with Galaxy Digital

The Bergmann recently agreed to sell his helios-spaces = "True"> for $ 65 million to the investment management company Galaxy Digital. This enabled Argo to reduce its overall debt and to avoid applying for insolvency protection. Wall said about the takeover:

"These agreements with Galaxy mark the beginning of a new chapter for Argo. We have built a world-class mining plant at Helios, and I believe that Galaxy has the right team and the right resources to build on the foundation created by ARGO."

Mike Novogratz-the CEO of Galaxy Digital-previously described The Helios agreement as a "transformative acquisition" for its organization.

"We believe in BTC in the long term and expect the miners with the lowest costs over time," he added.

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