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

Argo
Blockchain (NASDAQ:ARBK, LSE:ARB), a publicly-listed <a href=”https://www.financemagnates.com/terms/c/crypto-mining/” class=”terms__main-term” id=”b7de0d78-81b9-460d-b33d-311d7d0dff0e” target=”_blank”>crypto mining</a> 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 UpdateAccording
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. <a href=”https://www.financemagnates.com/cryptocurrency/argo-blockchain-produces-more-btc-in-january-due-to-lighter-winter/” target=”_blank” rel=”follow”>Compared to $3.42 million in January</a>, 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 FootArgo’s
results for January and February confirmed strong seasonal conditions, which <a href=”https://www.financemagnates.com/cryptocurrency/argo-blockchain-reports-35-lower-bitcoin-production-in-december/” target=”_blank” rel=”follow”>resulted in a visible decline in overall production in December</a>. 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 <a href=”https://www.financemagnates.com/terms/b/bitcoin/” class=”terms__secondary-term” id=”261088a9-0f41-4202-a73c-31f75ba6bd93″ target=”_blank”>Bitcoin</a> 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, <a href=”https://www.financemagnates.com/cryptocurrency/btc-miner-northern-data-increases-its-crypto-production-by-315-in-2022/” target=”_blank” rel=”follow”>increasing their
production by over 300%</a> in 2022, the mining sector as a whole struggled
throughout the year <a href=”https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/” target=”_blank” rel=”follow”>with a decline in total revenue of $6 billion</a>.Galaxy Digital Saves the
Day<a href=”https://www.financemagnates.com/cryptocurrency/mike-novogratzs-galaxy-saves-bitcoin-miner-argo-from-bankruptcy/” target=”_blank” rel=”follow”>As
previously announced</a> 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.