Argo Blockchain keeps cashing out BTC to pay the debt to Galaxy Digital

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Cryp­tocur­ren­cy min­ing firm Argo Blockchain con­tin­ues to sell its Bit­coin (BTC) hold­ings to cut its debt to Michael Novogratz’s cryp­to invest­ment firm Galaxy Digital.

Argo sold anoth­er 887 Bit­coin in July to reduce oblig­a­tions under a BTC-backed loan agree­ment with Galaxy Dig­i­tal, the firm announced on Friday.

With the aver­age BTC price of $22,670, the sales totaled $20.1 mil­lion, account­ing for a sig­nif­i­cant part of the max­i­mum out­stand­ing loan bal­ance of $50 mil­lion in Q2 2022. As of July 31, 2022, Argo held an out­stand­ing bal­ance of just $6.72 mil­lion under the BTC-backed loan, the announce­ment notes.

The lat­est sale comes short­ly after Argo sold anoth­er 637 BTC in June 2022 for $15.6 mil­lion. The firm report­ed that by the end of June 30, Argo had an out­stand­ing bal­ance of $22 mil­lion on the loan.

Despite active­ly cash­ing out its Bit­coin over the past few months, Argo still holds a notable stash of Bit­coin. As of July 31, 2022, Argo held a total of 1,295 BTC, with 227 of those rep­re­sent­ed by BTC equivalents. 

In the lat­est oper­a­tional update, Argo men­tioned that the com­pa­ny sig­nif­i­cant­ly increased its min­ing vol­umes in July. Dur­ing the month of July, Argo mined 219 BTC or BTC equiv­a­lents, com­pared to 179 BTC in the pre­vi­ous month. Based on dai­ly for­eign exchange rates and cryp­tocur­ren­cy prices dur­ing the month, min­ing rev­enue in July amount­ed to $4.73 mil­lion, while rev­enues in June amount­ed to $4.35 million.

Relat­ed: Riot Blockchain’s Bit­coin min­ing pro­duc­tiv­i­ty dropped 28% YOY amid record Texas heat

Focused on cryp­tocur­ren­cy min­ing, the Argo blockchain firm is a pub­lic com­pa­ny list­ed on Nas­daq and the Lon­don Stock Exchange. Argo is one of many cryp­to min­ing com­pa­nies that opt­ed to sell self-mined Bit­coin amid the bear mar­ket of 2022, includ­ing firms like Bit­farms, Core Sci­en­tif­ic and Riot Blockchain.

In con­trast, cryp­to min­ing firms like Marathon, Hut 8 and Hive Blockchain Tech­nolo­gies have still pre­ferred to stick with a long-stand­ing HODL strat­e­gy despite extreme mar­ket conditions.

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