Argo Blockchain is a mining company based in the UK. It is now part of a group of mining companies who have sold some of their BTC holdings to pay off debt. According to reports from the company, it owed Galaxy Digital about $22 million in loans. This loan had been procured by using BTC as collateral in 2021.
Argo made this information known in a blogpost and that it sold 635+ BTC for a price of $24,000 and more in June. It received ca. $15.5 million and used this amount to reduce the amount it owed. Argo acquired two loans worth $20 million first and later $25 million last year. Per reports issued by the company, it now owes more than $21 million on a loan and has enough available funds to avoid problems. This is contingent on BTC holding its price and not declining further.
Peter Wall, Argo’s CEO says that the company has experienced positive results by deploying a good strategy to manage risks. By selling off BTC holdings and reducing debt, especially those backed by BTC, the company is in a good position. With good liquidity and enough funds, the Argo can navigate conditions presented by the market. Argo has also hired a derivatives trader to help.
After selling off part of its holdings, Argo still has 1963 bitcoin in its account – ca. 18% lower than its May holdings. Other crypto mining companies sold their BTC holdings in June to stem losses. BTC prices have been dropping steadily and are currently hovering at $21,634 at the time of publishing this report.