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Argo Notes 16% Uptick in Bitcoin Production in May 2023

source-logo  financemagnates.com 09 June 2023 17:27, UTC

Argo Blockchain plc, a major player in the global cryptocurrency mining sector, has provided an operational update for May 2023, showing a rising number of produced cryptocurrencies. The company, listed on both the London Stock Exchange (LSE: ARB) and NASDAQ (ARBK), showcased a significant uptick in its Bitcoin (BTC) mining operations.

Argo Blockchain Reports Higher BTC Production

During May, Argo mined a total of 173 BTC, averaging 5.6 BTC per day. This marks a substantial 16% increase from the preceding month, with the average daily production rate at 4.8 BTC. The swell in BTC production can be attributed to increased uptime and an improvement in the operational efficiency of the company's mining fleet. Moreover, a jump in transaction fees on the Bitcoin network also contributed to the overall surge in production.

In addition, the previous month saw a rise in mining revenue for Argo, reaching $4.75 million—a solid 14% leap from April's earnings, which stood at $4.17 million. However, the company observed a decrease in the BTC holdings over the month, with 50 BTC held at the end of May, down from 83 BTC held at April's end. This decline stems from the company's decision to liquidate certain digital assets with the intent to utilize the proceeds toward debt repayment.

"I'm pleased by the significant increase in the company's BTC production during the month of May," Seif El-Bakly, the Interim CEO of Argo Blockchain, commented. "This is a testament to the hard work of our mining operations team to optimize performance across our fleet."

Argo Blockchain's total hash rate capacity remains steady at 2.5 Exahashes per second (EH/s). Nevertheless, the company anticipates a boost in capacity following the introduction of new BlockMiner machines at its Quebec facilities later this year. The additional machinery is projected to elevate the company's total hash rate capacity by 12%, approximately to 2.8 EH/s.

El-Bakly further added: "Over the long term, I believe increased Bitcoin network activity has the potential to drive demand for block space and increase miner fees." His statement reflects a positive outlook on the future prospects of Bitcoin mining operations, signifying Argo's commitment to capitalizing on the promising market dynamics.

Argo Produced 491 BTC in Q1, but Net Result on the Downside

Yesterday (Tuesday), Argo published unaudited financial results for Q1 2023, showing a total BTC production of 491 tokens in the reported period and an average mining rate similar to May's figures. Although the report showed notable improvements in revenue, cash reserves, and cost reductions, the company could not achieve a positive net result.

Argo Blockchain achieved a 15% revenue surge from Q4 2022, amounting to a total of $11.4 million. Despite incurring a net loss of $8.7 million, the company attained an adjusted EBITDA of $1.6 million.

In its recently published financials for 2022, the publicly-listed miner reported a year-end revenue of $58.6 million, representing a significant 36% decline. The company faced a net loss of $240.2 million for the year, primarily attributed to the diminishing value of cryptos.

Despite the company reporting net losses, it appears to be on the path to stabilization. However, this stability seemed far from guaranteed toward the end of last year as bankruptcy loomed. Fortunately, a strategic deal with Galaxy Digital Holdings, Ltd, a finance company specializing in digital assets, effectively shielded the company from the threat of closure.