Argo Mining Crypto Production Rose to 219 BTCs in July

Argo Blockchain Plc, a publicly traded cryptocurrency mining company based in the UK was listed on Friday. announced Its operational update for July 2022.

Argo reported that it had mined 219 Bitcoins during July, compared with 179 BTCs for June 2022.

The company further said its mining revenue in July amounted to £3.89 million [$4.73 million] compared to June’s £3.38 million ($4.35 million).

Argo stated that it had 1295 Bitcoins at 31 July 2022. The BTC Equivalents for Argo were 227.

Mining Hardware Machines Update

Argo reported that it had completed its machine swap of approximately 10,000 S19s Antminers hosted by Core Scientific and concluded its strategic pivot to a selfhosted business model.

Argo announced that its machine swap was successful and it now expects to get better performance out of its mining machines as well as greater control over its operations, including operating expenses.

Argo also mentioned that it had experienced operational problems with 17 series machines in July. Accordingly, the company performed a thorough review of its entire mining fleet, focusing on its S17, T17, and “17 series” machines.

Argo discovered that the 17 series machines were not the only ones affected by the problems. High failure rates were also seen in crypto mining firms that used the 17 series machines.

Argo did not remove the non-operational 17 Series machines. However, the company’s total hashrate as of July 31 was 2.23EH/s. This figure took into account the company’s continued installation of the S19J Pros ordered from Bitmain and the finalization of the Core machine switch.

Peter Wall, Argo’s CEO spoke out about the development. Core Scientific was an invaluable business partner during this transition period that is crucial for Argo’s development. The S19 machine’s swap marked a further consolidation in our infrastructure. We can now keep more control over our operations, and adjust them according to our needs. Although there were some difficulties in operating the 17 series machines we are happy with the return on investment we achieved for this part of our mining infrastructure.

 Financing Deal

Argo reported that 887 Bitcoins were sold during July at an average of $22,670. According to Argo, the proceeds were used to reduce its obligations under a BTC backed loan agreement with Galaxy Digital, as well to fund operating expenses.

Argo reported that as of 31 juillet 2022 it had an outstanding balance under the BTC backed loan of $6.72million. This is a substantial reduction from the maximum outstanding amount of $50 million in Q22022.

Helios Power Activities

Argo’s electricity prices at its Helios facility, Texas continued to rise in July than was anticipated. The rise in electricity prices around the globe is due to higher natural gas prices and increased demand for electric-powered air conditioners during a hot and dry summer.

In the middle of July, Argo said ERCOT (The Electric Reliability Council of Texas, Inc) – a US organization that operates Texas’s electrical grid –issued a conservation alert urging all residential, commercial, and industrial electricity users to reduce electricity consumption during specific afternoon hours when electricity demands were at its highest.

Argo and other large-scale Bitcoin miners from Texas decided to shut down their operations and reduce usage by more than 1,000 MW. This helped reduce strain on the grid during peak demand.

Image source: Shutterstock

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