Crypto Miner Argo Blockchain Mined 129 Bitcoins in July 2023

Argo Blockchain PLC, a leading global cryptocurrency miner listed on both the London Stock Exchange (LSE:ARB) and NASDAQ (NASDAQ:ARBK), has released its operational update for July 2023. The company reported mining 129 Bitcoin or Bitcoin Equivalents (BTC), averaging 4.2 BTC per day. This represents an 11% decrease from the daily average of 4.6 BTC in June 2023, primarily due to increased downtime at the Helios facility caused by weather-related curtailment and onsite construction.

Despite the decrease in BTC production, Argo Blockchain’s mining revenue for July remained stable at $3.87 million, closely mirroring the $3.84 million generated in June 2023. As of July 31, 2023, the company held 46 BTC.

Argo Blockchain also reported the installation and energization of 1,242 BlockMiner machines at its Quebec facilities in July, adding approximately 130 PH/s to its total hashrate capacity, which now stands at around 2.6 EH/s. The company anticipates the deployment of an additional 1,628 BlockMiners in the coming months.

Seif El-Bakly, Argo’s interim Chief Executive Officer, expressed satisfaction with the company’s growth in hashrate capacity and the successful deployment of the BlockMiner machines. He also highlighted the benefits of the company’s economic curtailment programs, which contribute to the stability of the Texas grid during peak demand periods while simultaneously reducing total power costs.

Argo Blockchain PLC, headquartered in London, UK, operates large-scale cryptocurrency mining facilities in Quebec and Texas. The company, which became the first climate-positive cryptocurrency mining company in 2021, is committed to sustainable operations predominantly powered by renewable energy.

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Argo Mining Crypto Production Rose to 219 BTCs in July

Argo Blockchain plc, a publicly traded cryptocurrency mining firm based in the UK, on Friday, announced its operational update for July 2022.

During the month of July, Argo revealed that it mined 219 Bitcoins as compared to 179 BTCs in June 2022.

The company further said its mining revenue in July amounted to £3.89 million [$4.73 million] compared to June’s £3.38 million ($4.35 million).

As of 31 July 2022, Argo said it held 1295 Bitcoins, out of which BTC Equivalents were 227.

Mining Hardware Machines Update

During the month of July, Argo stated that it completed its machine swap of about 10,000 S19s Antminers, which were hosted with Core Scientific, and finalized its strategic pivot to a self-hosted business model.

As a result of the completion of its machine swap, Argo said it now expects to generate better performance from its mining machines and have greater control of operations, including operational expenses.

Apart from that, Argo mentioned that in July it faced operational challenges with its 17 series machines. The company, therefore, conducted a comprehensive review of its entire mining fleet, with a focus on its S17 and T17 miners (collectively, the “17 series machines”).

As a result, Argo identified that it was not the only miner affected by the hitches associated with its 17 series machines. There were also high failures among the 17 series machines in other crypto mining firms in the sector.

Despite Argo removing the non-operational 17 series machines, its total hashrate at the end of July was around 2.23EH/s. This figure took into account the company’s continued installation of the S19J Pros ordered from Bitmain and the completion of the Core machine swap.

Peter Wall, Argo’s CEO, talked about the development: “We would like to thank Core Scientific for acting as an invaluable and reliable business partner in this transition period which represents a crucial step for Argo’s future development. The completion of the S19 machine’s swap marks a further consolidation of our infrastructure, allowing us to retain further control of our operations and adjust them in accordance with our needs at any given time. While there have been some challenges in operating the 17 series machines, we are pleased with the ROI we have achieved on this portion of our mining infrastructure.”

 Financing Deal

Moreover, during the month of July, Argo said it sold 887 Bitcoins at an average price of around $22,670. The firm said it used the proceeds to reduce obligations under a BTC-backed loan agreement with Galaxy Digital and to fund operating expenses and growth capital.

As of 31 July 2022, Argo mentioned it had an outstanding balance of $6.72 million under the BTC-backed loan, a huge reduction from the maximum outstanding balance of $50 million in Q2 2022.

Helios Power Activities

During the month of July, Argo’s electricity costs at its Helios facility in Texas continued to rise higher than anticipated in the past. Electricity costs have increased around the world, mainly because of higher natural gas prices stemming from the war in Ukraine, as well as increased demand for electric-powered air conditioning during an unusually hot and dry summer.

In the middle of July, Argo said ERCOT (The Electric Reliability Council of Texas, Inc) – a US organization that operates Texas’s electrical grid –issued a conservation alert urging all residential, commercial, and industrial electricity users to reduce electricity consumption during specific afternoon hours when electricity demands were at its highest.

As a result, Argo and major large-scale Bitcoin miners in Texas, proactively shut down their mining operations and reduced usage by over 1,000 MW, thereby reducing strain on the grid during peak demand.

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Argo Bitcoin Miner Sells 637 BTC to Offset Costs & Outstanding Loans

Argo Blockchain plc, a major global cryptocurrency mining firm, announced Thursday an update of its business operations for June 2022.

Argo said it mined 179 Bitcoins in June compared to 124 BTC in May 2022. The firm said the rise in Bitcoins mined during June is primarily because of an increase in total hashrate capacity and greater uptime at its Helios mining facility compared to May.

The firm stated that its mining revenue generated in June amounted to $4.35 million compared to $3.89 million in May.  

This means that in the previous month, Argo’s mining revenue increased by 10% to £3.38 million ($4.35 million) as the firm produced 46% more Bitcoin than in May because of higher uptime and increased hashrate.

The better performance was achieved as the firm shipped in and installed more S19J Pro machines from Bitmain, a commitment that keeps the Argo on track to install all 20,000 machines as agreed with Bitmain.

Peter Wall, Argo CEO, talked about the development: “Ongoing efforts to significantly upscale Argo’s mining operations are reflected in this month’s numbers and our increased hashrate,” adding that “These numbers, along with our continued installations of the S19J Pro machines, put us in a solid position with regards to our mining capacity. We believe the company is well-positioned to navigate the current market conditions and further increase our efficiencies.”

Argo mentioned it generated the profit at a time when Bitcoin and Bitcoin Equivalent Mining Margin stood at 50% during June, compared to May’s 55%. The decrease in mining margin was majorly driven by the reduced Bitcoin prices and higher electricity costs at its Helios facility in Texas.

As of June 30, Argo said it held 1,953 Bitcoins, out of which 210 were BTC Equivalents.

Besides that, the Bitcoin miner further disclosed that it hired an in-house derivative trader in June to help better navigate the extreme market conditions that have seen Bitcoin drastically plunge its price.

Argo mentioned that it has been using derivatives to reduce downside risk since October last year. The firm said it hired a full-time in-house derivative trader last month to improve the company’s capabilities within risks and treasury management.

Argo also disclosed that it sold 637 BTC at an average price of $24,500 in June in order to pay for operating expenses and a BTC-backed loan from Galaxy Digital.

At the end of last month, Argo said it had an outstanding $22 million balance loan with Galaxy Digital. In December last year, Argo signed the $30 million loan collateralized by Bitcoin.

Argo said that with the outstanding loan balance standing at $22 million, it is confident that it has adequate liquidity to avoid any potential liquidations of the BTC-backed loan in case Bitcoin prices continue dropping.

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Bitcoin (BTC) $ 26,539.11 0.31%
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Bitcoin Cash (BCH) $ 207.27 0.22%