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Argo Blockchain PLC on Tuesday said it mined less bitcoin in September than the month before as it faced increases in ‘average network difficulty’ and the continued impact of high electricity prices.
Argo Blockchain was trading 17% lower at 17.83 pence each in London on Tuesday afternoon.
The London-based blockchain technology company said it mined 215 bitcoin or bitcoin equivalents, compared to 235 in August 2022. It said this was due to a 12% increase in ‘average network difficulty’. The network difficulty is a measure of how difficult it is to mine bitcoins.
The company also limits operations at its Helios facility in Texas during periods of high electricity prices.
Based on exchange rates during September, mining revenue amounted to £3.8 million, down from £4.4 million the month before. Argo generated this income at a mining margin of 25% for September, up from 20% in August.
At September 30, Argo Blockchain held 512 bitcoin, of which 167 were bitcoin equivalents.
The company currently has 2.5 extrahashes per second of total hashrate capacity and expects to complete the installation of its Bitmain S19J Pro machines by the end of October 2022. After the sale of 3,400 mining machines to a third party, the company now expects to achieve a total hashrate capacity of 2.9 per second once the installation is complete.
The hashrate refers to the total combined computational power that is being used to mine and process transactions.
Argo also said that Perry Hothi will be stepping down as chief technology officer on October 15. Hothi will serve as a transitional advisor to the company while Jean Esquier, currently vice president of technology & development, will lead the technology section.
Chief Executive Officer Peter Wall said: ‘As another month of high energy prices and uncertain market conditions ended, Argo continues to execute on its plans to grow operations at Helios. We are nearing completion of the installation of our new Bitmain S19J Pro machines, which will increase our total hashrate capacity to 2.9 EH/s by the end of the month. This will represent a 81% increase in total hashrate capacity since the first quarter of 2022.’
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