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Argo Blockchain Shares Plunge 8% as Bitcoin Production Slumps 20% in January

Summary:
Argo Blockchain PLC, a London-based cryptocurrency miner, announced on Monday a drop in Bitcoin production for January, resulting in a 7.81% decline in its shares. The company attributed the decrease in mining output to a 20% decline in daily production compared to December, primarily driven by a 16% drop in Bitcoin-denominated hashprice. Argo Blockchain Shares Dip According to the London Stock Exchange, Argo Blockchain’s shares are down by 7.81% to 14.75 pence each in London on Monday, February 5. In a statement, the company revealed that it mined 124 Bitcoin in January, averaging 4.0 BTC per day. The reduction in daily production was mainly attributed to the decrease in Bitcoin-denominated hashprice, a metric influenced by lower transaction fees on the network and

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Argo Blockchain PLC, a London-based cryptocurrency miner, announced on Monday a drop in Bitcoin production for January, resulting in a 7.81% decline in its shares.

The company attributed the decrease in mining output to a 20% decline in daily production compared to December, primarily driven by a 16% drop in Bitcoin-denominated hashprice.

Argo Blockchain Shares Dip

According to the London Stock Exchange, Argo Blockchain’s shares are down by 7.81% to 14.75 pence each in London on Monday, February 5.

In a statement, the company revealed that it mined 124 Bitcoin in January, averaging 4.0 BTC per day. The reduction in daily production was mainly attributed to the decrease in Bitcoin-denominated hashprice, a metric influenced by lower transaction fees on the network and greater difficulty compared to December.

Argo Blockchain cited weather-related challenges as a contributing factor to the decline in production. The company experienced curtailments at its facilities in Quebec, Canada, and its Helios facility in Texas. Winter weather conditions, particularly during Winter Storm Heather, led to elevated power prices across Texas, prompting the temporary suspension of operations at the Helios facility.

“At Helios, the company’s operations were curtailed in response to winter weather conditions, which led to elevated power prices across Texas, particularly during Winter Storm Heather. The facility generates power credits during periods of economic curtailment, and the company’s share of power credits from January 2024 will offset a portion of the foregone revenue from curtailment,” the company explained.

Argo Blockchain’s Mining Revenue Slips to $5.3 Million

Argo Blockchain reported mining revenue of $5.3 million in January, representing a 19% decrease compared to the previous month’s figure of $6.6 million. As of January 31, 2024, the company held digital assets equivalent to 18 Bitcoin.

Argo Blockchain’s Chief Executive Officer, Thomas Chippas, commented on the challenges faced in January, stating, “Our Bitcoin production decreased in January as transaction fees retreated from the temporary spike we saw in December. We also experienced some instances of curtailment as a result of winter weather in Quebec and Texas, which is a great reminder of how Bitcoin mining contributes to grid stability during extreme weather events.”

Addressing the decline in production, Argo Blockchain’s CEO, Thomas Chippas, highlighted that cryptocurrency miners offer a “unique source of baseload demand which can be quickly curtailed to free up electricity for other users on the grid.”

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