Argo Daily BTC production rises 7% in February despite network issues
Argo Blockchain (NASDAQ:ARBK, LSE:ARB), a publicly traded crypto mining the company published its operations update for February on Tuesday, showing a 7% higher daily Bitcoin (BTC) production than a month before. However, due to the shorter month, the total number of tokens mined was modestly lower, coming in at 162 BTC compared to 168 BTC in January.
According to Argo’s statement published on the London Stock Exchange, the company was able to increase its average daily production despite the visible growth of Bitcoin network problems in the last month, which rose by 10%.
Mining revenue for February was $3.76 million, which was determined by the daily fluctuations in exchange rates and cryptocurrency prices throughout the month. Compared to $3.42 million in January, that translated to 9.94% month-over-month growth.
“I am proud of the team for increasing our average daily Bitcoin production despite the increase in average network difficulty in February compared to January. This is a testament to the hard work put in by our technology and operations teams. We continue to focus on strengthening our internal business processes and strive for operational excellence,” commented Seif El-Bakly, Interim CEO of Argo.
At the end of February, the company had 101 Bitcoin or ‘Bitcoin Equivalents’ and its total hash rate was 2.5 EH/s.
Argo starts 2023 on a stronger footing
Argo’s results for January and February confirmed strong seasonal conditions, which resulted in a visible decline in overall production in December. However, Bitcoin mining capacity is still lower than in 2022 on average.
Two months ago, Argo reported that Bitcoin mining production dropped by 35% month-over-month in December, with 147 BTC mined compared to 198 BTC produced the previous month. This decline was attributed to seasonal conditions, as the severe winter in the United States caused additional strain on the electrical grid, prompting the company to halt operations at the Helios facility in Dickens County, Texas.
“During the winter storm, Argo joined other Texas Bitcoin miners in reducing power consumption by an estimated 1,500 MW, according to the Texas Blockchain Council. Argo has always been committed to being a good community partner, and the company is proud to have contributed to the stability of the Texas power grid during the winter storm,” the company commented in the press release at the time.
Despite some mining companies in the industry, such as Northern Data, increasing production by over 300% in 2022, the mining sector as a whole struggled throughout the year with a decline in total revenue of $6 billion.
Galaxy Digital saves the day
As previously announced at the end of the year, the company remains in close cooperation with Galaxy Digital Holdings. After Argo’s near-bankruptcy situation, Galaxy, represented by Mike Novogratz, stepped in to buy Helios, a cryptominer located in Texas.
Helios was sold for $65 million, and Galaxy Digital Holdings took ownership. In addition to the sale, Galaxy agreed to refinance Argo Blockchain’s existing loans taken out to finance ongoing operations.
“Due to the change in ownership of Helios, Argo will no longer publish mining results on a monthly basis; it will no longer include the non-IFRS reconciliation table in its monthly operational updates. The company will continue to provide these figures on a quarterly basis and in its financial statements, ” wrote Argo Blockchain in its December Operations Update.
Argo Blockchain (NASDAQ:ARBK, LSE:ARB), a publicly traded crypto mining the company published its operations update for February on Tuesday, showing a 7% higher daily Bitcoin (BTC) production than a month before. However, due to the shorter month, the total number of tokens mined was modestly lower, coming in at 162 BTC compared to 168 BTC in January.
According to Argo’s statement published on the London Stock Exchange, the company was able to increase its average daily production despite the visible growth of Bitcoin network problems in the last month, which rose by 10%.
Mining revenue for February was $3.76 million, which was determined by the daily fluctuations in exchange rates and cryptocurrency prices throughout the month. Compared to $3.42 million in January, that translated to 9.94% month-over-month growth.
“I am proud of the team for increasing our average daily Bitcoin production despite the increase in average network difficulty in February compared to January. This is a testament to the hard work put in by our technology and operations teams. We continue to focus on strengthening our internal business processes and strive for operational excellence,” commented Seif El-Bakly, Interim CEO of Argo.
At the end of February, the company had 101 Bitcoin or ‘Bitcoin Equivalents’ and its total hash rate was 2.5 EH/s.
Argo starts 2023 on a stronger footing
Argo’s results for January and February confirmed strong seasonal conditions, which resulted in a visible decline in overall production in December. However, Bitcoin mining capacity is still lower than in 2022 on average.
Two months ago, Argo reported that Bitcoin mining production dropped by 35% month-over-month in December, with 147 BTC mined compared to 198 BTC produced the previous month. This decline was attributed to seasonal conditions, as the severe winter in the United States caused additional strain on the electrical grid, prompting the company to halt operations at the Helios facility in Dickens County, Texas.
“During the winter storm, Argo joined other Texas Bitcoin miners in reducing power consumption by an estimated 1,500 MW, according to the Texas Blockchain Council. Argo has always been committed to being a good community partner, and the company is proud to have contributed to the stability of the Texas power grid during the winter storm,” the company commented in the press release at the time.
Despite some mining companies in the industry, such as Northern Data, increasing their output by over 300% in 2022, the mining sector as a whole struggled throughout the year with a decline in total revenue of $6 billion.
Galaxy Digital saves the day
As previously announced at the end of the year, the company remains in close cooperation with Galaxy Digital Holdings. After Argo’s near-bankruptcy situation, Galaxy, represented by Mike Novogratz, stepped in to buy Helios, a cryptominer located in Texas.
Helios was sold for $65 million, and Galaxy Digital Holdings took ownership. In addition to the sale, Galaxy agreed to refinance Argo Blockchain’s existing loans taken out to finance ongoing operations.
“Due to the change in ownership of Helios, Argo will no longer publish mining results on a monthly basis; it will no longer include the non-IFRS reconciliation table in its monthly operational updates. The company will continue to provide these figures on a quarterly basis and in its financial statements, ” wrote Argo Blockchain in its December Operations Update.
