Argo Blockchain’s BTC Production in December Crippled by a Winter Storm

The bitcoin mining giant – Argo Blockchain – mined 147 BTC in December, roughly 25% less than the production levels registered in November.

The main reason for the decrease was a massive winter storm that hit the US last month and negatively affected the company’s Helios facility in Dickens County, Texas.

The Cyclone’s Effect

The severe snow blizzard that impacted much of the States around Christmas prompted Argo Blockchain to join other Texas BTC miners in reducing electricity usage. With a diminished production power, the firm mined 147 bitcoin (worth approximately $2.6 million at current prices), compared to the 198 bitcoin in November. 

“While our mining results for December were lower than anticipated, the primary driver was the winter storm which led us to curtail operations at Helios. We made this decision in order to not only reduce power usage on the grid, but also to prioritize the needs of the local community and safety of our Helios employees.

After the winter storm and associated freezing temperatures had subsided, we safely brought Helios back online and resumed operations,” CEO Peter Wall stated.

The Lone Star State, which rarely experiences cold weather, saw temperatures falling below freezing around the Christmas holidays. The local power grid struggled to cope with the challenge, and the US Department of Energy declared an energy emergency in the region. The climate stabilized in the following days, meaning that domestic BTC miners could restore their previous production capacity.

Argo Blockchain further revealed that it held 141 BTC as of the end of December 2022, its total debt stood at nearly $80 million, while its bank balance totaled around $20 million.

The Deal With Galaxy Digital

The miner recently agreed to sell its Helios facility to the investment management firm – Galaxy Digital – for $65 million. This allowed Argo to decrease its overall debts and avoid filing for bankruptcy protection. Speaking on the acquisition, Wall said:

“These agreements with Galaxy mark the beginning of a new chapter for Argo. We built a world-class mining facility at Helios, and I believe that Galaxy has the right team and resources to build upon the foundation that Argo established.”

Mike Novogratz – the CEO of Galaxy Digital – previously described the Helios agreement as a “transformative acquisition” for his organization. 

“We are long-term believers in BTC and expect the lowest-cost miners to win over time,” he added.