By
Godfrey Benjamin
April 20th, 2024
World-leading cryptocurrency miner Argo Blockchain recorded increased Bitcoin production despite the rise in network difficulty.
On March 7, the company released its operations update for February 2023, which disclosed the remarkable monthly performance. In addition to high Bitcoin production last month, Argo Blockchain (NASDAQ: ARBK) also saw its revenue surge during the same period.
Argo Blockchain Sees High Bitcoin Production Despite Network Difficulty
According to the press release, the crypto mining company mined 5.7 BTC daily, 162 Bitcoin or Bitcoin Equivalents in February. Last month’s Bitcoin production represented a 7% increase over January’s record when Argo produced 5.4 BTC per day. While the company’s productivity level increased, network difficulty also rose. However, Argo ended February with increased Bitcoin production amid the 10% average network difficulty in the month compared to January 2023.
Following a month of remarkable Bitcoin production for Argo Blockchain, the company held 101 Bitcoin or Bitcoin Equivalents as of February 28, 2023. It also revealed that its total hashrate capacity remains 2.5 EH/s. On revenue, the crypto miner exceeded the prior’s month record. Based on daily foreign exchange rates and crypto prices, mining revenue in February was $3.74 million [£3.09 million]. Meanwhile, January 2023’s revenue was $3.42 million [£2.80 million].
The impressive Bitcoin production and revenue for February 2-23 caused Argo Blockchain’s CEO, Seif El-Bakly, to commend the team. He wrote in the press release:
“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.”
Argo’s Court Case
Coinspeaker reported Argo’s court case in January, noting that the miners’ investors filed a class action lawsuit. The investors said in the court filing that the company misled them by not providing detailed disclosures on factors that could affect its operational capabilities. The investors noted that Argo Blockchain was not transparent on the adverse effects of network challenges, electricity costs, and capital constraints. The filing reads:
“The Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading.”
According to the complaints, “investors would not have purchased or otherwise acquired said securities, or would not have purchased or otherwise acquired them at the inflated prices that were paid” if they knew “the truth.”
Argo-Blockchain is a dual-listed company with listings in both London and the US. In addition to trading on the London Stock Exchange, the miner filed an IPO with the US Securities and Exchange Commission (SEC) in September 2021.