Argo Blockchain Defies COVID-19, Mines Record Levels of Bitcoin in Q1 2020

London Stock Exchange-listed mining firm Argo Blockchain has broken its own records for Bitcoin (BTC) mining, seemingly escaping the adverse impact of the COVID-19 pandemic.

An operational update published by Argo on April 6, revealed that the firm had mined 333.8 Bitcoin in March, as compared to 337.5 Bitcoin in February. 

Cumulatively, the amount of Bitcoin mined during the first three months of 2020 amounted to 918 Bitcoin — a record for the firm, and more than double what it had mined during the last three months in 2019.

Speaking to Cointelegraph, Argo Blockchain CEO Peter Wall explained that:

“Compared to other companies, we're in a good situation insofar as our mining hardware obviously doesn’t get the virus and is managed remotely by our team. Also, the hosting facilities where our machines are located are all in rural areas, with very low population density. There are technicians living nearby, or in some cases living on site, all of which means our operations have not been affected.”

Everything is “as normal,” reports Argo

In its update, Argo underscores that its mining operations, based in North America, “have not been impacted by COVID-19.” Wall declined to confirm the location of these sites, citing security reasons, but noted the company operates six sites across the country.

Alluding to “challenging conditions,” Wall’s comments for the March update note that Argo continues to deliver what he claims are “some of the best mining margins in the industry.”

In March, Argo generated mining revenue of £1.8 million ($2.22 million), slightly down from £2.5 million ($3.08 million) in February. 

For March, the revenue clocked in at a mining margin of 42%, which Argo again contends is “among the most efficient in the market.”

Argo attributes the slight decrease in revenue month-on-month to the algorithmic increase in mining Bitcoin early in March, alongside the cryptocurrency’s steep decline in value during the second week of the month.

Increasing capacity

Overall, Argo generated £6 million ($7.67 million) in revenue for the first three months of the year. The company revealed that its order of 1,000 Bitmain Antminer S17+ machines “remains on track,” and it expects to install by the end of April. 

The new machines will bring Argo’s total Bitcoin mining capacity to roughly 730 peta hashes (PH) — up 10% from current capabilities.

Over the past month, the company’s stock price has decreased by 25% from £5.35 ($6.58) to £4.00 ($4.92) per share, according to Google Finance.

In January, Argo Blockchain reported a tenfold increase in revenue for 2019 over the previous year, notwithstanding a decline in revenue in Q4 due, the firm said, to a decline in crypto prices, increased mining difficulty, and unfavorable foreign exchange rates.

As reported at the time, the global mining sector is expected to feel the pressure of Bitcoin’s halving, scheduled to occur around May, which will reduce mining rewards by 50%.