Cryptocurrency Miner Receives $6.1m From Data Center Sale
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Argo Blockchain, a cryptocurrency mining firm publicly listed in the USA and London, has announced the fall of its shares by a disturbing 55%. According to the latest news, Bitcoin has seen its shares rise to about 70% in 2024, while the mining firm is currently scraping the bottom in the crypto industry.
The company has searched for a solution to some of its problems and shareholder dissatisfaction. It has made a decision to sell its data center located in Mirabel, Canada. On Thursday, the company’s branch in London announced the execution of the move. At the same period, the miner provided more than 460,000 new ordinary shares.
The decision to sell a data center established in the Quebec region was first publicized two months ago. This center was sold for a significant $6.1 million. It has enabled the company to lessen its debt and enhance efficiency in its operations.
Argo Blockchain Has Sold Its Data Center To Pay $1.4 Million Debt
The revenue generated from the sale were utilized to settle outstanding mortgage of $1.4 million collected from Mirabel Facility. The remainder was used to pay back outstanding payment owned to Galaxy Digital Holdings.
Beginning from 28 March 2024, Argo’s remaining debt amount with Galaxy is $12.8 million, showcasing a 63% decrease from the initial balance of $35.0 million.
Argo’s Chief Executive Officer, Thomas Chippas, commented on the transaction. He mentioned that the company is continuously implementing its strategy of solidifying the balance sheet. It is also devoted in reducing non-mining operating expenses. The firm lessened its debt by $12.4 million in the first quarter of 2024.
Argo Blockchain’s Strategic Objectives Sets To Optimize Efficiency
In addition to the reduction in dept, Argo Blockchain has deployed and relocated mining machines from one facility to another in Baie Comeau, Quebec. This consolidation is anticipated to cut down the firm’s non-mining operating expenses by $0.7 million annually, optimizing the use of the facility and onsite team.
Initially, Argo Blockchain’s shares surged alongside the rise of the price of Bitcoin in 2024. However, weaker-than-expected BTC production in the early months led to a loss of confidence among shareholders in the firm. As a result, the crypto emergence in a broad market turned into an extended winter for the digital asset miner.
During this period, Argo Blockchain underwent a notable management changes, including Seif El-Bakly stepping down as Chief Operating Officer after holding the position of interim Chief Executive Officer from February to November 2023.
Both the London and US stock market charts for Argo shows a decline of approximately 55% since the start of the year. At the same time, Marathon Digital Holdings, the most prominent publicly traded cryptocurrency miner, also experienced a decrease of only 6%, and Phoenix Group is gaining approximately 2%.
