Argo Blockchain Slumps to Full-Year Loss on Bitcoin Price Slide
Argo Blockchain, the only cryptocurrency miner listed in the United Kingdom, reported a full-year loss in 2022 as the price of bitcoin declined and mining difficulty increased, driving up costs while revenue fell.
According to a statement, the London-based company reported a net loss of US$240 million, or 40.98 pence per share, compared to a net income of 30.8 million pounds, or 7.4 pence, the previous year. Last year, the price of bitcoin fell by more than 60%.
Miners across the board struggled in 2022 as revenue fell in tandem with the bitcoin price, while energy costs skyrocketed and the difficulty of mining a bitcoin block, for which they are rewarded, skyrocketed. Argo has negotiated a $35 million loan secured by its mining equipment from billionaire Michael Novogratz’s crypto-focused financial-services firm.
Argo’s mining margin widened to 45%-50% in the first quarter from 35% in the fourth quarter, while daily bitcoin production rose 5%. Argo said it will now focus on its operations in Quebec, Canada, where it operates two sites totaling 20 MW of power, according to its website.
(With inputs from Shikha Singh)
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