Argo Blockchain's Bitcoin Mining Margin Widens Most in at Least a Year

December production fell 26% as Argo powered off during a Texas storm.

AccessTimeIconJan 11, 2023 at 11:21 a.m. UTC
Updated May 9, 2023 at 4:05 a.m. UTC
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Argo Blockchain (ARBK)'s bitcoin mining margin widened in December by the most in at least a year, increasing to 48%, the London-based company said in a filing to the London Stock Exchange.

The margin, a measure of profitability that isn't defined by international accounting standards and whose calculation may vary across companies, had sunk to as low as 20% in August from a 2022 high of 75% in April.

Argo's production fell 26% to 147 bitcoin (BTC) for revenue of $2.49 million as the miner shut down operations during a storm in Texas. Bitcoin miners have been powering off at times of peak demand, such as the major storms that swept through the U.S. in December or during a July heatwave, in order to save on power costs. Some, like Riot Blockchain (RIOT), have been able to sell the power back to the grid.

Argo has been adversely affected by rising energy prices globally as it lacks a fixed-rate power purchasing agreement for its mega-site in Texas, called Helios. Last month, Argo narrowly avoided bankruptcy by agreeing to sell Helios to Michael Novogratz’s crypto-focused financial-services firm Galaxy Digital for $65 million and a $35 million loan.

Argo shares fell 11% to 9.05 British pence (11 U.S. cents) in London as of 11:00 UTC.

CORRECTION (Jan. 12, 11:36 UTC): Corrects percentage change of bitcoin production.


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Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

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