Argo Blockchain’s BTC production in December crippled by a winter storm

Bitcoin mining giant – Argo Blockchain – mined 147 BTC in December, about 25% less than the production levels recorded in November.

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

The effect of the cyclone

The severe snowstorm that affected much of the US around Christmas prompted Argo Blockchain to join other Texas BTC miners in reducing power consumption. With reduced production power, the firm mined 147 bitcoin (worth about $2.6 million at current prices), compared to 198 bitcoin in November.

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

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

The Lone Star State, which rarely experiences cold weather, saw temperatures drop below freezing around the Christmas holiday. 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 had 141 BTC at the end of December 2022, its total debt was almost $80 million, while its bank balance was around $20 million.

The agreement with Galaxy Digital

The miner recently agreed to sell the Helios facility to investment management company Galaxy Digital for $65 million. This allowed Argo to reduce its overall debt and avoid filing for bankruptcy protection. Speaking about the acquisition, Wall said:

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

Mike Novogratz – CEO of Galaxy Digital – described earlier The Helios deal as a “transformative acquisition” for his organization.

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