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Blockchain & Crypto

Argo Blockchain improved mining profits in October, widened profit margins

An increase in network difficulty led to lower bitcoin yield, but higher crypto prices helped the bottom line

During the month of October, Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) mined 204 bitcoin or bitcoin equivalents (BTC) compared to 215 BTC in September 2022, according to the AIM-listed cryptocurrency mining company’s latest trading update.

The decrease in BTC mined was primarily due to a significant increase in the bitcoin network difficulty in October compared to September.

As previously announced, the company sold 3,843 new-in-box Bitmain S19J Pro machines which represented the last batch of the original Bitmain order scheduled for installation in October 2022.

Consequently, the company's total hashrate capacity continues to be 2.5 EH/s.

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in October amounted to £3.55mln compared to £3.78mln in September.

Mining profit increased from £938,000 to £1.129mln, while margins of 32% represented a 7% improvement month on month

In the update. Argo addressed media reports “falsely claiming that Hydro-Québec, the public utility for power in Quebec, has proposed to stop providing electricity to existing mining operations”.

The company has “spoken with representatives from Hydro-Québec and the City of Baie-Comeau, and is confident that its current access to power at its two Quebec facilities will continue for the foreseeable future”.

As of 31 October 2022, Argo Blockchain held 138 bitcoin, of which 119 were bitcoin equivalents.

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