This Wall Street Bitcoin Miner Produced 63% Less BTC in July 2024

Bitcoin (BTC) miner Argo Blockchain, publicly traded on Wall Street and the London Stock Exchange (LSE), has presented today (Monday) its latest report on cryptocurrency production for July. The result of 48 mined BTC is over 60% worse than last year's figures but shows a slight improvement compared to recent months.

Much Less Bitcoin for Argo, but Comparable Revenue

In July, Argo Blockchain mined 48 Bitcoins, which translated into a production of 1.5 BTC per day. Compared to June, this result is 4 Bitcoins better but significantly worse than last year. In July 2023, BTC production averaged 4.2 BTC per day, totaling 129 tokens.

Despite such a significant drop in the number of Bitcoins mined, which is partly due to the increasing network difficulty and the April block reward halving, mining revenues decreased much less. In July, they amounted to $3 million, compared to $3.9 million reported in the same month last year. On a month-to-month basis, however, they increased by $0.1 million.

“Mining margin for July 2024 was in the mid-20% range, lower than June as a result of the lower hash price realized in July compared to June. As of 31 July 2024, the Company held 11 BTC equivalent,” Aego stated in its newest report.

In response to the latest report, ARB shares on the LSE fell over 9% on Monday morning, dropping to 9 pence and testing more than a month's lows. However, it's important to note that the decline may also be attributed to Bitcoin's deteriorating condition. After four days of steep losses, it dropped to just $50,000. The last time Bitcoin's price was this low was in February.

New Institutional Investor for Argo Blockchain

Argo Blockchain recently revealed a private placement deal valued at £6.5 million with an institutional investor. This agreement includes the issue of 57,800,000 ordinary shares priced at £0.1125 each on the LSE. It also provides the investor with warrants to buy an additional 57,800,000 shares at the same price.

The set price for this placement is higher than Argo's average recent trading prices, yet it still offers a 10% discount compared to the closing price on July 29. H.C. Wainwright & Co. has been appointed as the sole placement agent for this transaction.

Argo's latest quarterly report highlighted a revenue increase to $16.8 million, up 4% from the last quarter and showing an impressive 50% growth compared to the same period last year. Additionally, the report noted a significant reduction in net losses, which fell to $3.2 million, one-third of the previous quarter’s figure.

The company ranks among the few publicly traded cryptocurrency miners on Wall Street, known for its considerable market capitalization in Bitcoin mining. However, it is not the biggest and most prominent one. You can find the list of the 5 biggest BTC miners from Wall Street in the recent Finance Magnates review.