Cryptocurrency mining company Argo Blockchain said in its June operational update it had sold 637 BTC (EXANTE: Bitcoin) at an average price of around $24,500.
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The company said in a press release that proceeds from that sale were used to "fund operating expenses and growth capital, as well as to reduce obligations under a BTC-backed loan agreement with Galaxy Digital."
The figure is quite significant given that Argo managed to mine in June alone only 179 BTC. The company reassured that the move is "in line" with its risk management strategy that has been in place since January 2022. Argo said:
"Throughout 2022, the company has been selling a significant portion of monthly Bitcoin production, steadily reducing its exposure to its BTC-backed loan, and strengthening its balance sheet."
As of 30 June 2022, Argo says it held 1,953 BTC, of which 210 were bitcoin equivalents. The Texas-headquartered mining company isn't the only player on the market who sold cryptocurrency under debt pressure.
As iHodl previously reported, Core Scientific also dumped 79% of bitcoin holdings from its balance sheet as the company was seeking options to repay its debts and "complete large purchase orders." The company reportedly sold 7,202 mined coins for a total sum of $167 million in June, with 1,959 BTC left on its balance sheet.
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