Argo Blockchain Reports 35% Lower Bitcoin Production in December

Argo Blockchain (NASDAQ:ARBK), a publicly-listed crypto mining company, published its December 2022 operational update on Wednesday, showing a significantly lower Bitcoin (BTC) production amidst the mining operations halt at the Texan mine.

Argo Reports Lower Bitcoin Production Due to Harsh Winter

According to Argo's trading update, the company mined 147 Bitcoins during the month of December, compared to 198 BTC produced a month earlier. Seasonal conditions triggered the slump of 35% month over month (MoM): the miner halted its operations at the Helios facility in Dickens County, Texas, due to the severe winter that hit the United States and caused additional load on the electric network.

"During the winter storm, Argo joined other Texas Bitcoin miners in reducing power usage by an estimated 1,500 MW, according to the Texas Blockchain Council. Argo has always committed to being a good community partner, and the company is proud to have contributed to the stability of the Texas power grid during the winter storm," the company commented in the press release.

Argo's Bitcoin digging revenue in December came in at $2.49 million, slipping 39% MoM from the $3.456 million reported in November. At year-end, the publicly listed miner held 141 Bitcoins in its vault, most of which (116) were "Bitcoin Equivalents." The company's total hash rate remained at 2.5 EH/s.

Ahead of the US cash market opening on Wednesday, Argo shares reacted to the trading update rising 1.04% to $27.09. They are now growing more than 40% from last year's lows set in October.

Galaxy Saves Argo from Bankruptcy

At the end of last year, Argo Blockchain was facing potential bankruptcy. However, the company dismissed the Chapter 11 bankruptcy grim vision due to a strategic deal with Galaxy Digital Holdings, Ltd, a financial firm focused on digital assets, owned by Mike Novogratz.

Argo decided to sell its Texas-based crypto mine Helios for $65 million and use a new loan from Galaxy to refinance its current debt obligations take out to finance the development of its ongoing business.

"This transaction with Galaxy is a transformational one for Argo and benefits the company in several ways. It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market," Peter Wall, the Chief Executive of Argo Blockchain, said.

Not Everyone Was So Lucky

Although Argo Blockchain was able to save itself from bankruptcy, not every company in the crypto space was as fortunate. The prolonged crypto winter fueled by the collapse of FTX cryptocurrency exchange led to the collapse of BlockFi, a popular cryptocurrency lender and caused Midas Investment, a digital assets company from the DeFi space, to declare bankruptcy in late December.

Meanwhile, the insolvency of the Terra ecosystem in May caused the bankruptcy of Three Arrows Capital, a crypto hedge fund, and two lenders, Celsius Network and Voyager Capital.