Argo sold 637 bitcoin in June in an effort to strenghen its balance sheet

Quick Take

  • Argo sold 637 bitcoin last month and used part of those funds to pay down a loan from Galaxy Digital.
  • The company mined 44% more bitcoin in June (179 BTC) compared to the previous month but saw its margins reduced as bitcoin’s value went down.

Bitcoin miner Argo Blockchain became the latest big mining firm to reveal that it sold bitcoin last month.

The firm sold 637 bitcoin in June, at an average price of $24,500, according to a statement on Tuesday. Argo joins rivals including Bitfarms, Core Scientific and Riot, all of which uncharacteristically parted with bitcoin last month amid the bear market. These firms have historically held on to their mined bitcoins.

Besides using the proceeds to fund operating expenses and other areas of growth, Argo said it also used part of the money to pay down a bitcoin-backed loan from Galaxy Digital. Similarly, Bitfarms sold 3,000 BTC (about half of the Bitcoin holdings it had at the end of May) last month to pay part of a Galaxy loan.

The outstanding balance on Argo's loan is now $22 million. The company said that it had the necessary liquidity to avoid any "potential liquidation" even as Bitcoin prices continue to fall.

"We have seen positive results from our risk management strategy through which we have reduced the company's exposure to its BTC-backed loan, and we have hired a full-time derivatives trader," said Argo CEO Peter Wall in the statement. "We believe the company is well-positioned to navigate the current market conditions and further increase our efficiencies."

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Argo had secured a loan of $20 million and another $25 million loan from Galaxy last year to help finance its Texas facility (Helios). It also has an additional