Argo Blockchain PLC Sells Mirabel Quebec Data Center for $6.1 Million, Updates on February Operations

Argo Blockchain plc, a leader in cryptocurrency mining, has finalized the sale of its Mirabel, Quebec data center for $6.1 million, aiming to bolster its financial health by reducing its outstanding debt. This transaction will first repay the facility's mortgage, with excess funds dedicated to lowering the debt owed to Galaxy Digital Holdings, resulting in a significant decrease in the company’s debt profile.

The sale price translates to $1.2 million per megawatt, based on the facility's five megawatts of electrical capacity. Proceeds from the deal are expected to decrease Argo's overall debt by $5.4 million, marking a proactive step towards financial sustainability.

In terms of operational impact, Argo retains all mining machines from the Mirabel site, planning to relocate them to its Baie Comeau facility. This move is anticipated to streamline operations and reduce non-mining operating expenses by $0.7 million annually. Even after selling some prior generation machines, Argo projects a total hashrate capacity of 2.7 EH/s post-transaction.

February saw a 21% reduction in daily Bitcoin production due to a maintenance issue at an unrelated facility, impacting Argo's mining revenue. However, favorable power market conditions in February are expected to positively influence the company’s mining profits and operational cash flow.

The transaction is set to close by the end of March 2024, subject to customary closing conditions and regulatory approvals. Argo CEO Thomas Chippas highlights the deal as a testament to the company's commitment to financial robustness and operational efficiency.