Argo Daily BTC Production Rises 7% in February despite Network Difficulty Jump

Argo Blockchain (NASDAQ:ARBK, LSE:ARB), a publicly-listed crypto mining firm, published its February operational update on Tuesday, showing a 7% higher daily Bitcoin (BTC) production than a month before. However, due to the shorter month, the overall number of mined tokens was modestly lower and came in at 162 BTC compared to 168 BTC in January.

Argo Blockchain Publishes February Operational Update

According to Argo's statement published on the London Stock Exchange, the company was able to boost its average daily production despite the visible growth of Bitcoin network difficulty in the last month, which rose by 10%.

Mining revenue for February totaled $3.76 million, which was determined by the daily fluctuations in foreign exchange rates and cryptocurrency prices throughout the month. Compared to $3.42 million in January, it translated to 9.94% monthly growth.

"I'm proud of the team for increasing our average daily Bitcoin production despite the increase in average network difficulty in February when compared to January. This is a testament to the hard work put in by our technology and operations teams. We continue to focus on strengthening our internal business processes and striving for operational excellence," Seif El-Bakly, the Interim CEO of Argo, commented.

At the end of February, the company held 101 Bitcoin or 'Bitcoin Equivalents' and its total hashrate was 2.5 EH/s.

Argo Starts 2023 on Stronger Foot

Argo's results for January and February confirmed strong seasonal conditions, which resulted in a visible decline in overall production in December. However, the Bitcoin mining capacity is still lower than in 2022 on average.

Two months ago, Argo reported that Bitcoin mining output decreased by 35% month-over-month in December, with 147 BTC mined compared to the 198 BTC produced in the previous month. This decline was attributed to seasonal conditions, as the severe winter in the United States caused additional strain on the electric network, prompting the company to halt operations at its Helios facility in Dickens County, Texas.

"During the winter storm, Argo joined other Texas Bitcoin miners in reducing power usage by an estimated 1,500 MW, according to the Texas Blockchain Council. Argo has always committed to being a good community partner, and the company is proud to have contributed to the stability of the Texas power grid during the winter storm," the company commented in the then-press release.

Despite some mining companies in the industry, like Northern Data, increasing their production by over 300% in 2022, the mining sector as a whole struggled throughout the year with a decline in total revenue of $6 billion.

Galaxy Digital Saves the Day

As previously announced at the end of the year, the company remains in close collaboration with Galaxy Digital Holdings. Following Argo's near-bankruptcy situation, Galaxy, represented by Mike Novogratz, stepped in to acquire Helios, a crypto mine located in Texas.

Helios was sold for $65 million, with Galaxy Digital Holdings taking ownership. In addition to the sale, Galaxy agreed to refinance Argo Blockchain's existing loans that were taken out to fund ongoing operations.

"Due to the change in ownership of Helios, Argo will no longer disclose mining profit on a monthly basis; it will no longer include the non-IFRS reconciliation table in its monthly operational updates. The company will continue to provide these figures on a quarterly basis and in its financial statements," Argo Blockchain wrote in the December operational update.