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Argo Blockchain Shares Tumble As BTC Mined in December Falls

Sam Boughedda
Sam Boughedda trader
Updated 11 Jan 2023

Argo Blockchain (LON: ARB) shares tumbled more than 14% Wednesday, adding to its recent losses after the number of bitcoin mined and revenue in December fell.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


According to the company’s latest operational update, Argo mined 147 Bitcoin or Bitcoin Equivalents in December, down from 198 in November.

The decline was put down to the curtailment of Argo’s mining operations at the Helios facility in Dickens County, Texas, in response to the winter storm that impacted much of the US in late December.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

During the winter storm, Argo and other Texas Bitcoin miners reduced power usage by an estimated 1,500 MW, according to the Texas Blockchain Council.

At the end of December, the miner held 141 Bitcoin, of which 116 were Bitcoin Equivalents, while its total hashrate capacity continues to be 2.5 EH/s.

Based on daily foreign exchange rates and cryptocurrency prices during December, the company’s mining revenue amounted to £2.07 million ($2.49 million ), down from November’s £2.94 million ($3.46 million).
Argo generated the income at a Bitcoin and Bitcoin Equivalent Mining margin of 48%, compared to 29% in November.

“While our mining results for December were lower than anticipated, the primary driver was the winter storm which led us to curtail operations at Helios,” said Argo’s Chief Executive Peter Wall. “After the winter storm and associated freezing temperatures had subsided, we safely brought Helios back online and resumed operations.”

In late December, Argo announced a series of agreements with Galaxy Digital Holdings (TSX: GLXY) to sell its Helios facility to Galaxy for £54 million ($65 million), refinance existing equipment financing loans with a new asset-backed loan from Galaxy of £29 million ($35 million ), and host Argo’s mining machines at Helios.

The deal is expected to improve Argo’s balance sheet and liquidity by reducing its debt and improving its cash position.

In relation to the Helios sale and “shifting priorities,” Argo said Justin Nolan, its Chief Growth Officer, and Theodore Papadakis, its VP of Data Center Operations, have left the company.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.