London-listed bitcoin miner Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) has reported modest growth in bitcoin and bitcoin equivalent mining output for the first half of 2023, with a total of 947 coins mined representing a 1% increase compared to the same period in 2022.
Challenging macro conditions in the cryptocurrency sector stemmed further growth for the group.
Global bitcoin hashrate, a measure of the total computational power used to mine and process bitcoin transactions, surged by 78% from 30 June 2022 to 30 June 2023.
This increase in the global hashrate typically indicates heightened competition among miners and can lead to increased network difficulty.
Argo Blockchain's revenues for the first half of 2023 stood at US$24.0 million, marking a 31% decline from the revenues reported in the first half last year.
The company attributed this drop primarily to the falling bitcoin price and the aforementioned increase in global hashrate and network difficulty.
Argo Blockchain has taken measures to streamline its operations. The company successfully reduced its non-mining operating costs and expenses by 21% in the second quarter of 2023 compared to the previous quarter.
This strategy saw Argo report positive underlying earnings of US$1 million for the second quarter and US$2.3 million for the entire first half.
Net losses were US$18.8 million for the first half of 2023, compared to a net loss of US$39.6 million in the year-ago period.
At the end of June, Argo had US$9.1 million of cash and 46 bitcoin or bitcoin equivalents on the balance balance sheet.