The Argo Blockchain PLC (LON: ARB) share price fell 11.5% after releasing an update about its January operations as it mined 168 Bitcoin or Bitcoin Equivalents (BTC), representing a 14% improvement to the 147 BTC mined in December 2022.
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The Bitcoin miner attributed its higher output to fewer curtailment hours in January compared to December, when a severe winter storm led to massive power outages across the United States. However, the company also noted that its output was limited by the greater mining difficulty in January, which was 3% harder than In December.
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Argo Blockchain also highlighted the class action lawsuit filed against it in the Eastern District of New York on 26 January 2023. The case is Murphy vs Argo Blockchain plc et al., and the company has hired McDermott, Will, and Emery, LLP as its defence counsel.
The Bitcoin miner rejects all the claims made against it and plans to defend itself against the allegations vigorously. The company held 115 Bitcoin or Bitcoin Equivalents (BTC) as of 31 January 2023, indicating that it had sold some of the BTC mined.
Argo Blockchain is now selling some of the Bitcoin it mines, which it should have done last year when Bitcoin was trading at much higher prices instead of holding all its Bitcoin.
Most Bitcoin miners and holders have learnt an important lesson about taking advantage of rising prices to sell some of their Bitcoin and pocket some profits. Argo’s revenues during January at prevailing Bitcoin prices was $3.42 million (£2.80 million*), a significant jump from the $2.49 million (£2.07 million*) recorded in December 2022.
Investor sentiment towards Argo Blockchain shares was slightly negative due to the looming class action lawsuit, despite the company insisting that the case has no merit. Still, many are waiting for the case to begin to see the evidence tabled against Argo.
Argo Blockchain also decided not to disclose its mining profits monthly, instead choosing to do the same quarterly.
*This is not investment advice.
The Argo Blockchain share price chart.
The Argo Blockchain share price edged 11.54% lower to trade at 17.25p, from Tuesday’s closing price of 19.50p.
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