Bitcoin production fell 20% in January, while Argo Blockchain shares fell 8%

Argo Blockchain Pvt

The company attributed the decrease in mining production to a 20% decrease in daily production compared to December, which was mainly due to a 16% decrease in the Bitcoin-denominated hashprice.

Argo Blockchain Shares Dip

Argo Blockchain shares fell 7.81% to 14.75 pence each in London on Monday, February 5, according to the London Stock Exchange.

In its statement, the company said it will mine 124 bitcoins on average in January at 4.0 BTC. The decrease in daily production is mainly due to the decrease in the Bitcoin-denominated hashprice, a measure that is affected by the network's lower transaction fees and is a significant problem compared to December.

Argo Blockchain cited climate-related challenges as contributing to the decline in production. The company faces restrictions at its facilities in Quebec, Canada, and its Helios facility in Texas. Winter weather, particularly Winter Storm Heather, has caused electricity prices to rise across Texas, causing work on the Helio facility to be temporarily suspended.

“At Helios, the company's operations were disrupted in response to winter weather, which caused energy costs to rise throughout Texas, particularly during Winter Storm Heather. The facility will generate energy credits during economic downturns, and the company's share of the energy credits will offset a portion of anticipated revenue from January 2024, the company explained.

Argo Blockchain Mining Revenue Drops to $5.3 Million

Argo Blockchain reported mining revenue of $5.3 million in January, a 19 percent decrease from $6.6 million the previous month. As of January 31, 2024, the company held digital assets equivalent to 18 Bitcoin.

Commenting on the challenges faced in January, Argo Blockchain CEO Tomas Chipas said, “Our Bitcoin production decreased in January, due to the temporary increase in transaction fees we saw in December. We experienced some slowdowns due to winter weather in Quebec and Texas, which is a great reminder of how Bitcoin mining can contribute to grid stability in extreme weather conditions.

Argo Blockchain CEO Tomas Chipas explained the decline in production, noting that they provide cryptocurrency miners with a unique source of baseload demand, which can be quickly reduced to free up electricity for other users on the grid.