Argo Blockchain Reports 34% Increase in Bitcoin Mining for September 2023

Thursday, 05/10/2023 | 09:14 GMT by Damian Chmiel

Argo mined 136 Bitcoin in September, which is a visible increase from the previous month.

The company also reported a rise of 23% in mining revenue to $3.59 million.

Argo Blockchain is joining the list of publicly traded cryptocurrency miners whose production increased in September. One of the main players in the crypto mining sector mined 136 Bitcoin or Bitcoin Equivalents (BTC) last month, averaging 4.5 BTC per day. This represents an uplift of 34% compared to August 2023. Additionally, the company saw an uptick of 23% in mining revenue, amounting to $3.59 million.

A Closer Look at Argo's September Performance

Argo Blockchain's September performance was bolstered by a reduction in power costs, thanks to accrued power credits from economic curtailment. These credits have reduced the company's electricity expenses and improved its mining margins and cash flow. The boost in BTC mined is primarily attributed to fewer curtailment hours at the company's Helios facility.

However, the growth in Bitcoin production was slightly offset by an increase of 4% in the average network difficulty in September compared to August. Despite this, the company enhanced its mining revenue by 23%, reaching $3.59 million for the month.

As of 30 September 2023, Argo Blockchain held 32 BTC in its reserves. This is a decrease from the 49 BTC it held at the end of August. The drop is mainly due to the periodic revaluation of the company's non-Bitcoin digital asset holdings.

Regarding infrastructure, Argo completed the deployment of its BlockMiner machines in September. These machines contribute approximately 0.3 EH/s to the company's hashrate capacity at its Quebec facilities. With this addition, Argo's total hashrate capacity now stands at approximately 2.8 EH/s.

Higher in August but Still Lower YoY

The increase in Argo's mining aligns with data released by other major digital asset miners, including Marathon Digital, Riot Platforms, and CleanSpark. In addition, Finance Magnates reported yesterday (Wednesday) that Bitfarms Ltd. Successfully mined 411 BTC, representing an improvement of 7.3% from the previous month.

While the growth compared to August is undeniable, the results are still considerably modest when compared to September of last year. Argo's report from September 2022 shows that the company mined 215 BTC, which is 79 more than the current figure.

The same applies to the previously mentioned Bitfarms. Although the company reached its highest production rate since May in September 2023, it was still 70 BTC less than the previous year. This has led more people to question whether cryptocurrency mining is still profitable.