The Argo Blockchain PLC (LON: ARB) share price fell 4.36% after releasing its August 2023 operational update regarding its Bitcoin mining activities. The company mined 105 Bitcoin or Bitcoin Equivalents (BTC) or 3.4 BTC per day, marking a significant decline from the 4.6 BTC mined daily.
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The cryptocurrency miner attributed the lower number of BTC mined to economic curtailment at its Helios facility, which generated significant power credits that the Company expects will more than offset the foregone revenue from the curtailment.
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Preliminary estimates for the power credits accrued by the company in August 2023 indicate that the firm realized negative power costs for its Helios operations. The company’s August mining revenues were $2.93 million, marking a 24% decline compared to July, when the company made $3.87 million.
However, the company expects to make a significantly higher mining margin percentage in August due to the anticipated power credits. The company has fully embraced the philosophy of selling some of the Bitcoin it owns at current prices instead of holding it forever. Therefore, it held only 49 BTC as of 31 August 2023.
The Company installed and energized 900 BlockMiner machines during August, representing about 95 PH/s, at its Quebec facilities. The Company's total hashrate capacity is now at about 2.7 EH/s. The Company expects to receive and deploy the remaining 728 BlockMiners in the coming months.
On 6 September 2023, Argo Blockchain granted 2,071,076 RSUs in aggregate to new employees hired since 1 April 2023.
Argo's interim CEO, Seif El-Bakly, said: “I am excited about the continued deployment of our BlockMiner machines at our Quebec facilities; their installation represents another step in our strategy to strengthen our operations and deliver long-term value to our shareholders. Additionally, I want to emphasize the importance of our ability to serve as a flexible load in Texas during record-setting levels of electricity demand in August. The curtailment of our operations at Helios helped to reduce stress on the Texas power grid and provided significant economic benefits to Argo. This additional source of value from economic curtailment is especially important to our shareholders during periods of low Bitcoin prices.”
Argo Blockchain (ARB) share price.
The Argo Blockchain share price fell 4.36% to trade at 8.249p, from Thursday’s closing price of 8.625p.
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