Argo Blockchain Records $3.4 Million Revenue Despite Decline in Bitcoin Mining

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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December 4, 2024 08:50 EST

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London-based Bitcoin mining company Argo Blockchain reported $3.4 million in mining revenue for November 2024 despite a decrease in Bitcoin production.

Argo Reports $3.4M Mining Revenue Amid Output Decline

According to its press release on December 4, Argo disclosed mining 39 Bitcoin in November, compared to 46 in October, reflecting a drop in daily mining output from 1.5 BTC to 1.3 BTC.

Despite the drop in Bitcoin production, Argo attributed the revenue increase to the “higher hash price and BTC price realized in November compared to October.” The Bitcoin miner recorded $3 million in October 2024.

This news comes after a challenging third quarter (Q3), where the Bitcoin miner reported a 28% year-over-year revenue decline. Argo generated $7.5 million in revenue in Q3 2024, down from $10.4 million in the same period in 2023.

The company’s mining margins also plummeted from 58% to just 8%, attributed mainly to the absence of power credits that bolstered last year’s performance.

Revenue Trends Reflect Market Shifts

In August 2024, Bitcoin mining revenue dropped to $827.56 million, marking the lowest monthly earnings since September 2023. Bitcoin mining profitability has been affected by rising energy costs, regulatory challenges, and fluctuating cryptocurrency prices.

Despite the hurdles, Argo Blockchain managed to improve its net loss during Q3. The company reported a $6.3 million loss for the quarter, an improvement compared to the $9.9 million loss recorded in Q3 2023.

For the first nine months of 2024, Argo’s total revenue reached $36.7 million, a slight increase from $34.4 million during the same period in 2023.

Argo’s recent performance showcases resilience, but the sector continues to face volatility. Notably, Argo mined 123 BTC during Q3, maintaining an average daily output of 1.3 BTC.

The company’s shares reflect market skepticism after the November update. Following the announcement, Argo’s stock dropped by 14.27% in pre-market trading, according to Nasdaq data.

Argo Blockchain’s November results mirror broader trends in Bitcoin mining, where firms adapt to changing market dynamics. Higher Bitcoin mining difficulty in November gave many mining companies temporary relief, but concerns about operational costs remain.

According to industry analysts, Hash Price fluctuations and rising energy costs remain significant obstacles for Bitcoin mining firms.

The Bitcoin mining industry is also seeing shifts beyond Argo Blockchain.

Foundry, the world’s largest Bitcoin mining pool, recently announced laying off 27% of its workforce as part of a strategic restructuring. The cuts primarily impacted its ASIC repair and hardware teams, while core operations like mining pools and self-mining remain active.