The Argo Blockchain PLC (LON: ARB) share price edged 4% higher after releasing its June operations update. The mining company mined 139 Bitcoin or Equivalents (together, BTC), or 4.6 BTC per day, marking a significant decline.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company confirmed that it had mined 17% fewer Bitcoin daily when compared to the 5.6 BTC mined per day in the previous month. The firm attributed the decline to the greater network difficulty experienced in June and the increased curtailment of mining operations at the Helios facility in Texas.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Admiral Markets More than 4500 stocks & over 200 ETFs available to invest in – Read our Review
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- IG Top-tier regulation – Read our Review
- XTB UK regulated by the FCA – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Furthermore, while the curtailment of mining operations reduced the number of BTC mined, the company expects to receive additional cash proceeds from particular power trading activities undertaken by the operator of Helios.
Argo generated mining revenues worth $3.84 million in June, representing a 19% decline from the previous month, given that its May revenues were $4.75 million. The company has embraced the idea of selling the BTC it mines since it only held 44 BTC as of 30 June 2023.
The company noted that its hashrate capacity remains stable at 2.5 EH/s. However, the company has started receiving and installing the new BlockMiner machines at its Quebec facilities. The new machines are expected to increase the firm’s total hashrate by 12% to about 2.8 EH/s once fully deployed.
The company did not benefit from the Bitcoin prices rallying from their June lows of $24,789 to a high of $31,429 as its revenues remained low. Still, seeing the company fully embrace the philosophy of selling the Bitcoin mined to generate revenues instead of holding it for long periods was refreshing.
Investors muted reaction to today’s data indicates that they are comfortable with the results despite the decline witnessed in the Bitcoin mined and the revenues generated by the Bitcoin miner.
*This is not investment advice.
Argo Blockchain (ARB) share price.
The Argo Blockchain share price edged 4% higher to trade at 13.00p, from Tuesday’s closing price of 12.50p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.