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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.