The drop in
Bitcoin (BTC) price at the beginning of the year led to a publicly listed
miner, Argo Blockchain (NASDAQ: ARBK), reporting a reduction in cryptocurrency
mining. Specifically, the company mined 124 Bitcoin in January, a 20% decrease
from December 2023.
The company
generated mining revenue of $5.3 million in January 2024, 19% less than the
$6.6 million in December 2023. The decline in revenue correlated with the
decrease in Bitcoin production.
Argo’s CEO
Thomas Chippas noted
that the lower Bitcoin output reflects a retreat of transaction fees. “Our
Bitcoin production decreased in January as transaction fees retreated from the
temporary spike we saw in December.”
He also
explained that curtailments of facilities in Quebec and Texas due to winter
weather served as a reminder that Bitcoin mining can quickly adjust power usage
to assist grid stability during extreme conditions.
Looking at
the historical results from 2023, it is evident that the mining level at the
beginning of 2024 is one of the weakest in recent times. Mining below the level
of 125 Bitcoins only occurred once over the past year, in August 2023, when the
BTC price hit its holiday lows and mining revenues were reduced to $2.9
million.
Source: Argo
