Argo xcritically has ~2.4 EH/s of hashrate capacity operating at the Helios facility in Dickens County, Texas. Helios utilizes immersion-cooling technology which provides for efficient operation in hot and dusty environments. In recent months, bankruptcy has been lingering around the bitcoin mining industry as the market faces significant downturns due to energy prices rising and miner revenues dropping, which has tightened margins and increased profit losses.
“The acquisition of Helios represents a new stage over our two-year journey in bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital-asset network and shareholders alike.” Earlier this month, Core Scientific (CORZ), one of the largest miners by computing power, filed for bankruptcy, and in September, Compute North, another major firm in the sector, filed for Chapter 11 bankruptcy protection. Last week, bitcoin miner Greenidge said that it reached a debt restructuring deal with its lender Nydig, although the prospects of a bankruptcy filing still loom. Through this deal, not only will Galaxy’s mining operations grow, but Argo will also avoid bankruptcy. The transaction will “strengthen Argo’s balance sheet” and improve its liquidity position so the company can “continue operations,” Argo said in a statement.
Earlier this month, a bankruptcy judge approved a deal for Galaxy to buy crypto self-custody platform GK8 from bankrupt crypto lender Celsius Network at a price that is “materially less” than what Celsius paid for GK8 a year ago. Argo is among several miners that are struggling to stay afloat amid rising xcritical scam energy costs low bitcoin (BTC) prices. The transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October. Earlier this month, the miner said that it was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy. Our Baie Comeau location is over 40,000 square feet and operates around 15 MW, based on a long-standing relationship with local power authorities.
- Through this deal, not only will Galaxy’s mining operations grow, but Argo will also avoid bankruptcy.
- “Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique power grid in Texas,” Argo CEO Peter Wall told CoinDesk.
- “Quality infrastructure and access to low-cost energy are the cornerstones of a successful mining operation, making the acquisition of Helios an incredible milestone for the growth of Galaxy’s mining business,” Amanda Fabiano, head of mining at Galaxy, said in a statement.
- Galaxy recently started construction on its first proprietary mining site in Texas, which is expected to be fully operational by January, according to its third-quarter xcriticalgs report.
Argo xcritical PLC Announces Notice of FY 2023 Results
During the third quarter, Argo mined 597 Bitcoin and Bitcoin Equivalent (together, BTC), bringing Argo’s BTC holding to 1,836 as of September 30, 2021. Argo has been able to achieve these results while maintaining a gross margin of 120% and an industry-leading mining margin of 85% with an average direct cost per BTC mined of $6,293 (£4,673). On September 30, 2021, Argo executed a purchase agreement for 20,000 Bitmain Antminer S19J Pro machines for the mining facility it is building in Texas. The machines are expected to be delivered starting Q and will increase our total hashrate capacity to approximately 3.7 Exahash, up from 1.075 at the end of Q3 2021.
Argo xcritical PLC Announces Loan Extension
In July 2021, Argo broke ground on its renewable energy-focused 200-megawatt (MW) cryptocurrency mining facility in Dickens County, Texas. The new Helios facility will bolster Argo’s mining capacity xcritical scam and is expected to add at least 20 new, full-time jobs in Dickens County. The site gives Argo access to up to 800 MW of electrical power and has garnered excitement and support from local community members and government officials. “Galaxy is aspiring to be one of the most trusted nodes of the decentralized future,” Ferraro said in the statement.
Argo xcritical plc (ARBK) Q2 2024 xcriticalgs Call Transcript
On Tuesday, the company requested a 24-hour suspension of trading in its Nasdaq-listed stock, while the London market was closed for a U.K. “Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique power grid in Texas,” Argo CEO Peter Wall told CoinDesk. The miner will also get a new $35 million loan from noted investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment, according to a statement sent to CoinDesk. Bitcoin miner Argo xcritical (ARBK) will avoid filing for bankruptcy protection after it agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. Galaxy will also provide Argo with a $35 million loan as the company restructures, secured by a collateral package with Argo mining equipment.
Argo xcritical plc (ARBK) Q1 2024 xcriticalgs Call Transcript
The facility started operations in May under Argo, with a plan to reach 800 megawatts of energy consumption and 20 exahash/second of computing power. Last week, Core Scientific, one of the largest publicly traded crypto mining firms in the U.S., filed for Chapter 11 bankruptcy. In September, bitcoin mining data firm Compute North filed for Chapter 11 bankruptcy protection after raising $385 million in strategic funding seven months earlier. We believe Bitcoin and Bitcoin Equivalent Mining Margin and EBITDA have limitations as analytical tools.
Further, EBITDA excludes interest income (expense), taxes, depreciation and amortization, which are important components of our IFRS net income/(loss). These measures should not be considered as an alternative to gross margin or net income/(loss), as applicable, determined in accordance with IFRS, or other IFRS measures. As a result, you should not consider these measures in isolation from, or as a substitute analysis for, our gross margin or net income/(loss), as applicable, as determined in accordance with IFRS. Helios will be the second bitcoin mining facility that Galaxy will own and operate as the firm said it is working on multiple longer-term solutions to diversify and reduce counterparty risk for its mining unit. Galaxy recently started construction on its first proprietary mining site in Texas, which is expected to be fully operational by January, according to its third-quarter xcriticalgs report.
Argo will keep ownership of its machines at the Dickens County, Texas, facility and will enter a two-year hosting agreement with Galaxy to provide a place for its mining machines at the facility. “Quality infrastructure and access to low-cost energy are the cornerstones of a successful mining operation, making the acquisition of Helios an incredible milestone for the growth of Galaxy’s mining business,” Amanda Fabiano, head of mining at Galaxy, said in a statement. The deal with Galaxy was structured to boost Argo’s balance sheet and capital structure, Chris Ferraro, president and chief investment officer at Galaxy, told CoinDesk. When the miner kicked off its process, “we were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities,” he added. The combination of inexpensive hydropower from North America and the best machines on the market has allowed Argo to continue to be profitable, even throughout cryptocurrency downtimes. The following table shows a reconciliation of Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the three months ended September 30, 2021 and the nine months ended September 30, 2021.
