Argo Blockchain Reduces Hash Rate Growth Forecast By 42%
Table of contents
Filing With US Securities And Exchange Commission (SEC)
Argo CEO Peter Wall stated in a filing with the US Securities and Exchange Commission (SEC) that the revision reflects current estimates for the supply and deployment of the specialized machines utilizing Intel's Blockscale ASIC processors. Wall stated,
"We have worked closely with ePIC and Intel to modify the machine design to increase total mining efficiency, which has delayed our expected deployment schedule. We have worked closely with ePIC and Intel to modify the machine design to increase total mining efficiency, which has delayed our expected deployment schedule,"
By October of this year, the business still plans to finish installing its order of 20,000 S19 J Pro machines from Bitmain.
Announcement Of Pre-Tax Loss
Argo announced a pre-tax loss of £36.9 million for the first half of 2022, mostly due to a non-cash decrease in the fair value of digital currencies retained on the balance sheet. Despite the difficulties we had in the first half of 2022, Wall remarked,
"Argo is well positioned to weather the current downturn with its large and highly efficient mining infrastructure, runway for growth, and experienced management team, which has successfully navigated the group through previous crypto winters."
With an average selling price of $22,670 per coin, the miner sold 887 BTC last month, and the majority of the profits were used to pay off its $6.72 million debt with Galaxy Digital, secured by Bitcoin. Wall further stated,
"Throughout the period, we have been steadily selling Bitcoin, utilizing derivatives to obtain a higher realized price than simply selling into the market. In Q2 2022, we sold Bitcoin at an average realized price of approximately $28,500, realizing hedge gains in excess of $1,500 per Bitcoin."