Argo Blockchain Produces More BTC in January Due to Lighter Winter

Argo Blockchain (NASDAQ:ARBK), a publicly-listed crypto mining firm, published its January operational update on Wednesday, showing a 14% higher production in BTC than a month before, translating to $3.42 million in revenue.

Higher Bitcoin Production in Argo Blockchain Data Centers

According to today's press release, the production was increased due to the easing of the harsh winter conditions which hit the United States in December and caused mining rigs to be shut down for several days. However, the positive effects of a calmer winter have been somewhat limited by the constantly rising network and Bitcoin (BTC) mining difficulty. Compared to the previous month, the difficulty measures rose by 3% in January 2023.

Argo Blockchain produced 168 BTC in January while mining 147 tokens a month earlier. At the end of the month, the company had 115 Bitcoin in its inventory, handling a total hashrate of 2.5 EH/s.

The improved performance translates into a better company valuation on NASDAQ. On Monday, Argo shares were up 35%, testing their highest levels since October. Currently, ARBK is trading at $2.72 per share.

Galaxy Digital and Argo Blockchain Work Closely

The company continues to work closely with Galaxy Digital Holdings, as announced at the end of the year. The company was on the brink of bankruptcy and Galaxy, represented by Mike Novogratz, agreed to acquire Helios mine and grant an asset-backed loan.

"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 operational update.

The Texas-based cryptocurrency mine Helios was sold for $65 million. Additionally, Galaxy agreed to refinance Argo Blockchain loans, which were contracted to cover current operations.

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A Better January After a Weak December

Argo Blockchain's results confirm strong seasonal conditions in December that dampened overall cryptocurrency production.

"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 press release.

However, January's production reports already show better results. HIVE Blockchain, another publicly listed miner, produced 260 BTC in January, 21% more than in December 2022, when the production rate reached 214 BTC. The average daily mining output came in at 8.4 BTC per day.

At the same time, Riot Blockchain mined 740 BTC in January compared to 659 BTC produced in December 2022. At the end of the month, Riot had 82,656 miners with a capacity of 9.3 EH/s, which does not include the 17,040 machines that were shut down due to Texas data center damage after severe winter weather.

However, miners experienced a difficult 2022. Although industry players such as Northern Data increased production by more than 300% last year, the mining industry's total revenue slipped by $6 billion.