Bitcoin Miner Argo Blockchain Emerged Unscathed From Its UST Stake

The company said it was able to sell its minimal UST stake for around 93 cents per token before the price completely collapsed.

AccessTimeIconMay 18, 2022 at 3:39 p.m. UTC
Updated May 11, 2023 at 5:34 p.m. UTC

Argo Blockchain (ARGO), the mining company that diversified into Web 3 through its Argo Lab subsidiary earlier this year, said on Wednesday it had a stake in UST that wasn’t material and was able to “nearly break-even” on its position during the UST meltdown.

“We weren’t super heavily invested in the Terra ecosystem,” said Argo’s CEO Peter Wall during the company’s first-quarter earnings conference call. “We did have some UST, we were participating in yield generation on the Anchor protocol,” he added.

  • Meme Coin Liquidity Hits Record High
    Meme Coin Liquidity Hits Record High
  • How Ledger Stax Plans to Make Self-Custody More Mainstream
    How Ledger Stax Plans to Make Self-Custody More Mainstream
  • Why Dogecoin Is a 'Weird' Investment
    Why Dogecoin Is a 'Weird' Investment
  • AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
    AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
  • Argo was one of the first publicly traded crypto mining companies to form a non-mining business unit called “Argo Labs.” The subsidiary was created in January with a goal of diversifying Argo’s business and taking advantage of other opportunities in the blockchain ecosystem. Currently, Argo Lab’s investments include Polkadot's DOT, ether (ETH) and Solana's SOL, according to the company’s first-quarter presentation.

    Argo was able to sell its UST positions at 93 cents per token before the price fully collapsed, according to Wall. Most recently, UST was still trading around 10 cents according to CoinDesk’s price index. “Looking back [selling at that level] was a very good move given last time I checked it was trading around 12 cents,” Wall said during the call. “Overall, on a net basis, in the Terra ecosystem, we nearly broke even on our positions, after taking into consideration the yield that we generated through our holdings,” he added.

    Last week, Terra’s LUNA token fell 99.7% in value as the U.S. dollar-pegged algorithmic stablecoin terraUSD (UST) lost its peg and dropped to under 10 cents, causing an outflow in funds from the Terra ecosystem and declining sentiment for the project among the crypto community.

    The collapse of the Terra ecosystem has taken a toll on numerous large-scale as well as retail investors. On social media and message boards, former LUNA backers have reported huge losses, despair and hopelessness.

    Argo Blockchain reported its first-quarter earnings on Wednesday, in which its net income tumbled but revenue rose year over year, and it reiterated its hashrate guidance of 5.5 exahash per second (EH/s) by the end of 2022. The shares of the miner traded down about 4% in the U.S. on Wednesday, keeping pace with that of other publicly traded crypto miners.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets