Argo Blockchain’s stock crashes by 8% as Bitcoin mining output declines
Shares of Argo Blockchain took a nosedive on Monday after the London-based mining company revealed a significant drop in its Bitcoin production for January. According to the company’s financial update, Argo Blockchain mined 124 BTC, representing a 20% decrease compared to December 2023. The decline in production was attributed to a 16% reduction in Bitcoin-denominated hash price and various factors such as weather-related disruptions in Quebec, Canada, and Texas, USA, where the company’s facilities are located.
Following this announcement, Argo’s shares (ARBK) on the Nasdaq stock exchange plummeted by over 7% to $1.93, as reported by Google Finance. In terms of revenue, Argo recorded $5.3 million for January, reflecting a 19% decline from the previous month when it generated $6.6 million. As of January 31, Argo held around 18 BTC on its balance sheet, as detailed in the financial report.
In response to the decrease in production, Argo Blockchain’s CEO, Thomas Chippas, highlighted the unique nature of crypto miners as providers of baseload demand, which can be easily curtailed to free up electricity for other users on the grid.
