Argo Blockchain PLC has entered into an agreement to sell its Mirabel data center in Quebec for $6.1 million, with the proceeds expected to reduce outstanding debt by $5.4 million. The sale is anticipated to strengthen the company's balance sheet and have minimal impact on its revenue. Argo will retain ownership of all mining machines at the Mirabel Facility and is relocating them to its Baie Comeau facility. The company also plans to sell certain prior generation machines, maintaining a total hashrate capacity of 2.7 EH/s.
The sale of the Mirabel Facility is expected to close by the end of March 2024, subject to customary closing conditions and regulatory approvals. Argo's CEO, Thomas Chippas, stated, "This Transaction demonstrates the Company's continued commitment to strengthening the balance sheet through a focus on aggressive deleveraging and reducing non-mining operating expenses."
In February 2024, Argo mined 92 Bitcoin, with a daily production of 3.2 Bitcoin. The decrease in daily Bitcoin production was attributed to a maintenance-related outage at the Cottonwood substation, resulting in approximately 77 hours of downtime. Despite this, the company's CEO expects lower power prices at Helios for February, which will positively impact mining profit, margin, and operating cash flow for the month.
The company's mining revenue in February 2024 amounted to $4.5 million, a 15% decrease compared to the prior month. As of 29 February 2024, Argo held digital assets worth the equivalent of 14 Bitcoin.
The announcement contains forward-looking statements reflecting the company's current views, interpretations, beliefs, or expectations regarding its financial performance, business strategy, and plans. These statements include forward-looking statements related to the company and the sector in which it operates, addressing matters that involve risks and uncertainties.