Argo Blockchain PLC Announces March Operational Update
- 5% increase in daily Bitcoin production in March 2024 compared to the prior month.
- Sale of Mirabel facility and relocation of mining machines to Baie Comeau.
- Mining revenue rose by 55% to $7.0 million in March 2024.
- Digital assets worth 26 Bitcoin held by the Company as of March 31, 2024.
- None.
The increase in daily Bitcoin production for Argo Blockchain, despite heightened network difficulty, indicates a robust operational strategy and the successful deployment of efficient mining rigs. The relocation of mining operations with minimal disruption to output is a testament to the company's logistical capabilities. Investors should note the impact of such operational efficiencies on the bottom line, as they can lead to improved profit margins, especially in the volatile cryptocurrency market where operational costs can significantly influence profitability.
Additionally, the substantial increase in monthly revenue reflects not only the increased production but also the potential recovery of Bitcoin prices or improved sales strategy. However, investors should remain cautious, as the cryptocurrency market is known for its volatility and the upcoming Bitcoin halving event could introduce additional uncertainty. The halving could potentially lead to a decrease in mining rewards, which may impact future revenue unless compensated by a rise in Bitcoin prices or further operational efficiencies.
The reported 55% increase in mining revenue for Argo Blockchain is a significant short-term positive indicator for the company's financial performance. Holding digital assets equivalent to 26 Bitcoin suggests a strategic reserve that could provide liquidity or act as a hedge against market fluctuations. However, the intrinsic value of these assets is highly dependent on market conditions, which can change rapidly in the cryptocurrency space.
Investors should also consider the capital gains from the sale of the Mirabel facility. This liquidity injection could be used for further investment in mining technology or to bolster the company's balance sheet. In the long term, the company's ability to adapt to the post-halving environment and maintain profitability will be important for sustained growth and investor confidence.
The operational update from Argo Blockchain highlights the company's adaptation to a more challenging mining environment due to increased network difficulty. This reflects a deep understanding of blockchain technology and the ability to maintain a competitive edge. The successful relocation and deployment of mining equipment with minimal production impact demonstrates a strategic approach to asset management and operational flexibility.
Understanding the technological aspects of cryptocurrency mining, such as hash rate and energy efficiency, is essential for investors. These factors directly affect the cost of production and the sustainability of mining operations. Argo's continued investment in efficient mining infrastructure is likely to be a critical factor in its ability to navigate the post-halving landscape, where rewards for miners will decrease, placing a greater emphasis on operational efficiency.
LONDON, ENGLAND / ACCESSWIRE / April 5, 2024 / Argo Blockchain plc ("Argo" or "the Company") (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining, is pleased to provide the following operational update for March 2024.
During the month of March, the Company mined 103 Bitcoin, or 3.3 Bitcoin per day. This is a
In March 2024, the Company sold its Mirabel facility and relocated its mining machines from Mirabel to its facility in Baie Comeau, Quebec. The relocated miners were deployed and actively hashing at Baie Comeau before the end of March, and the relocation had minimal impact on monthly Bitcoin production.
Mining revenue in March 2024 amounted to
As of 31 March 2024, the Company held digital assets worth the equivalent of 26 Bitcoin.
Argo CEO Thomas Chippas said, "I'm pleased by the increase in daily Bitcoin production we achieved in March, despite an increase to average network difficulty and the limited downtime from relocating our miners to Baie Comeau following the sale of our Mirabel facility. As we approach the halving, we continue to focus on streamlining our operations and running as efficiently as possible."
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes forward-looking statements which reflect the Company's current views, interpretations, beliefs or expectations with respect to the Company's financial performance, business strategy and plans and objectives of management for future operations. These statements include forward-looking statements both with respect to the Company and the sector and industry in which the Company operates. Statements which include the words "remains confident", "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue", "estimate", "future", "opportunity", "potential" or, in each case, their negatives, and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties because they relate to events that may or may not occur in the future, including the risk that the Company may receive the benefits contemplated by its transactions with Galaxy, the Company may be unable to secure sufficient additional financing to meet its operating needs, and the Company may not generate sufficient working capital to fund its operations for the next twelve months as contemplated. Forward-looking statements are not guarantees of future performance. Accordingly, there are or will be important factors that could cause the Company's actual results, prospects and performance to differ materially from those indicated in these statements. In addition, even if the Company's actual results, prospects and performance are consistent with the forward-looking statements contained in this document, those results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to any obligations under the Prospectus Regulation Rules, the Market Abuse Regulation, the Listing Rules and the Disclosure and Transparency Rules and except as required by the FCA, the London Stock Exchange, the City Code or applicable law and regulations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. For a more complete discussion of factors that could cause our actual results to differ from those described in this announcement, please refer to the filings that Company makes from time to time with the United States Securities and Exchange Commission and the United Kingdom Financial Conduct Authority, including the section entitled "Risk Factors" in the Company's Annual Report on Form 20-F.
For further information please contact:
Argo Blockchain |
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Investor Relations | |
Tennyson Securities |
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Corporate Broker Peter Krens | +44 207 186 9030 |
Fortified Securities | |
Joint Broker Guy Wheatley, CFA | +44 74930989014 |
Tancredi Intelligent Communication UK & Europe Media Relations |
About Argo:
Argo Blockchain plc is a dual-listed (LSE:ARB);(NASDAQ:ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With mining operations in Quebec and Texas, and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. For more information, visit www.argoblockchain.com.
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SOURCE: Argo Blockchain PLC
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FAQ
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