Argo Blockchain plc, a prominent figure in the global cryptocurrency mining scene, has released its operational report for January 2024, revealing a downturn in Bitcoin production. The London Stock Exchange and NASDAQ-listed company (LSE: ARB; NASDAQ: ARBK) mined 124 monthly, averaging 4.0 daily. This marks a significant 20% decrease in daily production from the previous month.
The reduction in Bitcoin mining output has been attributed to a 16% fall in the Bitcoin-denominated hash price, alongside weather-induced interruptions. The hash price, a metric estimating the value of hashing power, is influenced by the block subsidy, network difficulty, and transaction fees. January’s price suffered due to diminished transaction fees on the Bitcoin network and an escalation in network difficulty compared to December 2023.
Weather-Related Curtailments
Adverse weather conditions have also played a role in the reduced Bitcoin yield. Argo’s operations in Quebec and the Helios facility in Texas experienced curtailments due to harsh winter weather. Winter Storm Heather increased power costs in Texas, prompting economic curtailments at Helios. However, the facility generated power credits during these periods, expected to compensate for some of the lost revenue.
The company’s mining revenue for January 2024 stood at $5.3 million, witnessing a 19% decline from December 2023’s $6.6 million. Despite the challenges, Argo Blockchain maintains a digital asset reserve equivalent to 18 Bitcoin as of January 31, 2024.
As Argo Blockchain navigates through the fluctuations of the cryptocurrency market and external challenges, the company remains steadfast in its commitment to optimizing operations and maximizing shareholder value in the face of adversity.
