Argo Blockchain Increases Daily Bitcoin Production Despite Network Issues
Publicly traded Bitcoin (BTC) mining company Argo Blockchain has reported an increase in its daily Bitcoin production for the month of February, despite a significant increase in network difficulties. According to the operational update released on March 7, Argo mined 162 Bitcoin or BTC equivalents during the month, giving a daily production rate of 5.7 BTC. This is a 7% increase from the 5.4 BTC per day produced in January.
Bitcoin mining difficulty is a measure that defines how difficult it is to mine a BTC block. It requires more hash rate or additional computing power to verify transactions and mine new coins. In February, the BTC network soared to new records, reaching a difficulty of 43 trillion on February 25, according to data from Blockchain.com.
Despite the increase in network difficulties, Argo’s production rate has increased, thanks to the company’s investment in new mining equipment and a focus on increasing efficiency. The news comes amid industry anticipation for the next Bitcoin difficulty adjustment which is expected to happen on March 10. According to data from BTC.com, the next difficulty level is estimated to reach 43.4 trillion.
Argo Blockchain sold its flagship mining facility Helios to Mike Novogratz’s crypto investment company Galaxy Digital amid the tough crypto market in 2022. However, despite the sale, Argo has continued to mine using Galaxy’s facility and its production rate has steadily increased. Months before the transaction, Argo’s monthly BTC mining generated more than 200 BTC.
Argo isn’t the only mining company that seems unaffected by February’s BTC issue. Other miners such as Cipher Mining produced 16% more Bitcoin during January and Marathon Digital increased its average daily Bitcoin production by 10% compared to January. However, the Hut 8 mining company saw its daily Bitcoin production rate drop from 6 BTC in January to 5.6 BTC in February.
Argo Blockchain has focused on expanding its business to capitalize on the growing demand for Bitcoin mining services. The company recently announced plans to establish a Bitcoin mining facility in West Texas, which is expected to have a capacity of up to 200 megawatts and is scheduled to start in Q4 2022.
In conclusion, despite the increase in network difficulties, Argo Blockchain’s focus on increasing efficiency and investment in new equipment has led to an increase in the daily Bitcoin production rate. The company’s expansion plans and investments in new facilities suggest that it is well positioned to capitalize on the growing demand for Bitcoin mining services.
