Argo Blockchain plc (LON: ARB): Should you invest in this crypto firm?
Highlights
·
The BTC mining of the Cryptocurrency miner Argo Blockchain
plc has declined from 166 BTC in April to 124 BTC in May 2022.
· Due to the overall lower
mining, mining revenue of the company fell from £5.52 million in April to £3.07
million in May.
· The company must allot new
Ordinary Shares at £0.4950 per share to the members of DPN LLC in connection
with its acquisition.
London-based globally leading
cryptocurrency miner, Argo Blockchain plc (LON: ARB), has been in the news
lately after announcing the allotment of new shares linked with the acquisition
of DPN LLC. The company has also released its
operational update for May 2022 recently.
ARB’s takeover of DPN LLC and operational update
Argo Blockchain plc is a leader in
developing blockchain technologies using renewable sources of power. In March
2021, the energy-efficient bitcoin miner took over DPN LLC in addition to the
land held by DPN LLC for the company’s flagship Bitcoin mining facility in Texas, Helios. Under
the agreement related to the acquisition, the company must issue 8,147,831 new
Ordinary Shares at £0.4950 per share to the members of DPN LLC.
According to the recent operational
update released by Argo Blockchain on 7 June, 124 Bitcoin or Bitcoin Equivalents
(BTC) were mined by the company during May. This was low as compared to the
mining carried out in April, which stood at 166 BTC. Various factors were
responsible for this decline, which included troubles in the Bitcoin network.
Reasons
for dip in mining activity
Mainly owing to the short-run
probabilistic results, a considerably lower Bitcoin was mined as compared to
the past months by the Argo Blockchain’s hashrate on Terra Pool. The company is
aiming for the optimisation of its hashrate across all the alternate pools. Additionally,
mining operations of the company were restricted, and power usage at Helios was
cut down due to higher power demand in Texas amid soaring electricity prices.
Unplanned interruptions were also faced by the company at Helios as it
established the online presence of its new facility.
Due to the overall lower mining, the mining revenue of the company fell from £5.52 million in April to £3.07 million in May, based on the month’s day-to-day foreign exchange rates and crypto prices. Down from 75% in April, this income was generated at a BTC Margin of 62% in May. The decline in this percentage can mainly be attributed to the lesser price of Bitcoin and the reduced mining of BTC. 2,379 Bitcoin, which included 187 BTC Equivalents, were held by Argo Blockchain as of 31 May 2022.
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