Bitcoin Winter Hits Argo: A Look into Its Sluggish Start in 2024

<p>The drop in the price of Bitcoin at the beginning of the year led to a publicly listed
miner, Argo Blockchain (NASDAQ: <a href="https://www.financemagnates.com/tag/argo/" target="_blank" rel="follow">ARBK</a>), reporting a reduction in cryptocurrency
mining. Specifically, the company mined 124 Bitcoin in January, a decrease of 20% from December 2023.</p><p>Argo Reports Lowe Bitcoin
Mining Production and Revenue in January 2024</p><p>The company
generated mining revenue of $5.3 million in January 2024, 19% less than the
$6.6 million <a href="https://www.financemagnates.com/cryptocurrency/argo-blockchain-excels-in-bitcoin-production-announces-coo-exit/" target="_blank" rel="follow">in December 2023</a>. The decline in revenue correlated with the
decrease in <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> production.</p><p>Argo's CEO, Thomas Chippas, <a href="https://www.londonstockexchange.com/news-article/ARB/argo-january-operational-update/16317268">noted
that</a> 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.”</p><p>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.</p><p>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.</p><p>Argo Bids Farewall to the
COO, Secures £7.8M in Funding</p><p>In
addition, Argo Blockchain has undergone significant leadership changes. The Chief
Operating Officer, Seif El-Bakly, stepped down from his role after serving as the
Interim Chief Executive Officer from February to November 2023. The company
thanked El-Bakly for his contributions and leadership over the past year.</p><p>With
El-Bakly's departure, the operations team will continue under the guidance of the Chief Strategy Officer, Sebastien Chalus, who has been leading operations since February
2023. Argo Blockchain issued 1,973,892 new ordinary shares to El-Bakly as part
of a separation agreement.</p><p>In a
separate capital raising move, Argo Blockchain secured £7.8 million ($9.9
million) through share placement to institutional investors. The company
issued 38,064,000 new ordinary shares priced at £0.205 per share, representing
a small discount to the 30-day average price. The funds will provide working
capital, facilitate debt repayment, and support general corporate purposes.
This capital injection positions Argo <a href="https://www.financemagnates.com/terms/b/blockchain/">Blockchain</a> for continued operational
stability and future growth.</p>

This article was written by Damian Chmiel at www.financemagnates.com.