Argo Blockchain, a cryptocurrency mining company, has continued to sell its Bitcoin holdings to repay the debt owed to Galaxy Digital, a cryptocurrency investment company owned by Michael Novogratz.
Argo Blockchain sells Bitcoin
Argo Blockchain has announced a sale of another 887 Bitcoin. The company announced that the sale made in July would reduce the company’s obligations on a Bitcoin-backed loan agreement with Galaxy Digital.
The average Bitcoin price for the sold coins was $22,670, with the sale totaling $20.1 million. The sale also accounted for a significant amount of the maximum outstanding loan balance of $50 million during the second quarter of 2022.
As of July 31, 2022, Argo Blockchain held an outstanding balance of only $6.72 million under a Bitcoin-backed loan. The sale of the company’s Bitcoin also comes after the mining company sold another 637 BTC in June 2022. The sale was made for $15.6 million.
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Argo also reported that by the end of June, the company’s outstanding balance on its loan was $22 million. Despite the company actively cashing out its Bitcoin over the past few months as the price of Bitcoin tumbled, the company still holds a large number of BTC. As of July 31, Argo’s Bitcoin holdings were 1,295 BTC. Out of this, 227 were represented by Bitcoin equivalents.
In the recent update, Argo also revealed that it had increased its mining volumes in July significantly. During the month, Argo mined 219 BTC worth of Bitcoin equivalents, while it had mined 179 BTC during the previous month.
The foreign exchange rates and cryptocurrency prices in July also showed that the mining revenue during the month came in at $4.73 million, while the monthly revenues came in at $4.35 million.
Argo Blockchain is a company that focuses on digital asset mining. Argo Blockchain is listed on NASDAQ and the London Stock Exchange. Argo is also one of the largest cryptocurrency mining companies that have chosen to sell self-mined Bitcoin amid the ongoing bear market of 2022. This included companies such as Bitfarms, Core Scientific, and Riot Blockchain.
Mining companies amid bear market
Some leading crypto mining companies such as Marathon, Hut 8, and Hive Blockchain Technologies have still preferred a HODL strategy despite the ongoing market conditions. However, some of these companies dumped some of their holdings in June after a massive plunge in Bitcoin prices.