Argo Blockchain Sells Quebec Facility Amidst Decreased BTC Production

By: Isha Das

Bitcoin mining corporation, Argo Blockchain, in a bid to address its declining Bitcoin production, has sold off its Mirabel facility in Quebec for a sum of $6.1 Million. This is aimed at offsetting the company's debt and increasing the efficiency of its mining operations.

According to a statement released on March 5, it was revealed that $4 million out of the sale value was dedicated towards settling owed debts to Galaxy Digital, hence reducing Argo's estimated debt to about $14 million as at the end of February, which marks a significant 60% decrease from the original debt owed to Galaxy Digital. The remaining proceeds from the sale was utilized in clearing the outstanding mortgage on the Mirabel facility.

Argo CEO, Thomas Chippas, stated the strategic move allowed them to exit Mirabel Facility profitably while maintaining a strong hashrate capacity of 2.7 EH/s. Following the sale, Argo plans to relocate the miners from the disposed Mirabel facility to its Baie Comeau facility, another operational site in Quebec. This transition, coupled with the ongoing dynamics of the Bitcoin protocol, may spur new users and use-cases.

The relocation follows a significant fall in Argo's Bitcoin production last year which dropped by 21%, to 92 BTC or 3.2 BTC daily due to maintenance-related outage at a third-party-owned Cottonwood substation and the rising Bitcoin mining difficulty.