Argo Blockchain, a prominent Bitcoin mining company, has successfully repaid a $35 million loan it secured from asset manager Galaxy Digital in 2022, according to a recent company filing on August 12.
This repayment is a significant achievement for Argo, marking its recovery from the challenging period during the 2022 crypto bear market that threatened its survival.
The loan, which was crucial in helping Argo avoid bankruptcy, was part of a larger deal that saw Argo sell its Helios Bitcoin mining facility in Texas to Galaxy Digital for $65 million.
At the time, the loan was collateralized by Argo’s Bitcoin mining equipment, which included over 23,000 mining machines operating at Helios and other locations in Canada.
Despite these challenges, Argo has managed to maintain its mining operations without a noticeable impact on its hash rate, a key metric that measures the computational power of its mining activities.
Argo’s CEO, Thomas Chippas, highlighted the importance of this milestone, noting that the company has managed to repay the loan without disrupting its mining capacity.
This stability is evident in Argo’s continued expansion of its mining capabilities, which included the deployment of around 2,750 new mining machines in the third quarter of 2023.
The repayment of the loan is not just a financial victory for Argo; it also signifies the company’s resilience and strategic recovery following the crypto winter of 2022.
The company’s hash rate stood at 2.7 exahashes per second (EH/s) by the end of 2023, reflecting its steady growth.
In July alone, Argo mined 48 Bitcoin, averaging 1.5 BTC per day, showcasing the efficiency and sustainability of its operations.
As Argo closes this chapter, Galaxy Digital is moving forward with its expansion plans.
On August 1, Galaxy announced its intention to enhance and monetize the power capacity at the Helios data centre, which it acquired from Argo.
This expansion is driven by the growing demand for power from emerging technologies like artificial intelligence and high-performance computing.
