Key points:
- Argo Blockchain mined less Bitcoin in October
- Revenue fell to £3.55m during the month
- Argo's share price is down over 4% Tuesday
Argo Blockchain (LON: ARB) shares are down another 4% Tuesday, adding to its share price losses over the past year or more, following the release of its October operational update.
The struggling Bitcoin miner said it mined 204 Bitcoin or Bitcoin Equivalents (BTC) compared to 215 BTC in September 2022, with the decrease put down to a significant increase in the Bitcoin network difficulty in October compared to September.
The company held 138 Bitcoin as of October 31, of which 119 were BTC equivalents, and based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in October amounted to £3.55 million, down from £3.78 million in September.
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Argo Blockchain shares tumbled over 50% last week on news the company's plans to raise £24 million ($27 million) from a strategic investor via a share subscription failed to materialise, forcing it to sell more of its Bitmain mining machines. In addition, the company warned investors it was looking for alternative financing, but it may have to cease operations if it could not secure new funding.
In today's statement, Argo said it is continuing to engage in financing discussions.
Argo said on Tuesday that as per its previous announcement, it sold 3,843 new-in-box Bitmain S19J Pro machines, representing the last batch of its original Bitmain order scheduled for installation in October 2022. Therefore, its total hashrate capacity continues to be 2.5 EH/s.
Argo also stated that it repaid the $6.7 million that was previously outstanding under the BTC-backed loan with Galaxy Digital.