Argo’s June Bitcoin Production and Revenue Fall by Almost 20%

Argo’s June Bitcoin Production and Revenue Fall by Almost 20%

The London and
NASDAQ-listed miner, Argo Blockchain has revealed a drop in monthly Bitcoin
(BTC) production and revenue. Despite these setbacks, Argo is enhancing its
total hash rate capacity and signals a stronger outlook for the future.

Argo Blockchain’s Bitcoin
Production Falls in June

In June
2023, Argo mined 139 Bitcoin or Bitcoin Equivalents, averaging 4.6 BTC daily.
This represents a decrease of 17% from the 5.6 BTC mined each day in May 2023. During
the previous month, the total number of tokens mined was 173 BTC.

June’s
decline is attributed to increased network difficulty and a scale-down of
operations at the Helios facility in Texas. While this curtailment limited the
number of Bitcoin mined, Argo anticipates additional cash inflows from specific
power trading activities that Helios’ operator previously undertook.

The
Company’s revenue in June totalled $3.84 million, marking a drop of 19% from
May 2023’s figure of $4.75 million.

Despite
declining production and revenue over the past month, ARGO shares on Wall
Street are at relatively high levels. The company tested the April highs during
yesterday’s (Tuesday’s) session, closing the day at almost $30 per share.

Enhancements to Hash Rate Capacity

As noted on 30
June, Argo held 44 BTC. The firm maintained its total hash rate capacity at 2.5
EH/s and began to equip its Quebec facilities with new BlockMiner machines.
Once fully operational, these machines are projected to boost the company’s
total hash rate capacity by 12%, raising it to roughly 2.8 EH/s.

Despite the
short-term challenges reflected in the report in June, the company’s efforts to
bolster its mining capacity underline a strategic response to an increasingly
competitive cryptocurrency mining landscape.

Cryptocurrency Winter Hurt
the Company

Unaudited
financial results for the first quarter of 2023 from Argo Blockchain were
published last month. Argo reported a significant boost in revenue in Q1 2023,
which saw an increase of 15% from the fourth quarter of 2022, totalling $11.4
million. Regardless of this growth and an adjusted EBITDA of $1.6 million, the
company sustained a net loss of $8.7 million.

What is
more, the company’s 2022 financials revealed a contrasting picture. The
publicly-listed mining firm reported a year-end revenue of $58.6 million,
marking a substantial decline of 36%. The year saw the company suffering a net
loss of $240.2 million. This situation is primarily influenced by the falling value of
cryptocurrencies.

As you can see from the chart below, 2022 was a challenging year overall for Bitcoin miners. After a record-breaking 2021, they earned $6 billion less, which was mainly due to the ever-increasing difficulty of mining.

Argo appears to be regaining stability even with the
adverse net results. Despite the threat
of bankruptcy, a decisive agreement with Galaxy Digital Holdings Ltd., a
finance company with expertise in digital assets, successfully averted the
impending closure and set Argo back on track.

This article was written by Damian Chmiel at www.financemagnates.com.

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