Argo's Bitcoin Output in May Drops 25% From April Amid Teething Problems at Texas Facility
The company said the decline also reflected an increase in mining difficulty on the Bitcoin network.
Jun 7, 2022 at 9:29 a.m. UTCUpdated May 11, 2023 at 4:16 p.m. UTC
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Argo Blockchain (ARBK), the only London Stock Exchange-listed crypto miner, said its bitcoin production in May dropped 25% from April as its new Helios facility in Texas experienced "unplanned downtime" and mining difficulty increased on the Bitcoin network.
- The company, whose American depositary receipts are listed on Nasdaq, produced 124 bitcoins or bitcoin equivalents in May, compared with 166 the previous month.
- The company started mining operations at its Helios facility in Dickens County, Texas, in May. While bringing the facility on line, the company "faced some limited instances of unplanned downtime," it said in an announcement Tuesday.
- In addition, high temperatures in the state caused increased energy demand and higher electricity prices, and so Argo voluntarily reduced its energy usage there by curtailing its mining operations.
- Argo also attributed the decline to an increase in mining difficulty on the Bitcoin network.
- "The company's hashrate on Terra Pool produced substantially lower bitcoin than in previous months, primarily due to short-term probabilistic outcomes. The company continues to explore all options to optimize its hashrate across alternative pools," Argo added.
- Argo reported mining revenue for May of just under £3.1 million ($3.9 million), down from £5.52 million in April.
- The company's shares fell 8.7% as of publication time, trading at 47.5 pence, on the LSE.
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Jamie Crawley is a CoinDesk news reporter based in London.