Argo Blockchain partners with ePIC Blockchain

London-based cryptocurrency mining firm’s stock continues to slide

A series of computer mining rigs sit on a shelf                                 
Argo Blockchain has produced 25% less Bitcoin in May than in April – Photo: Shutterstock

Stock in Argo Blockchain was down by 4.5% at the close of Wednesday trade in London at 47 pence, despite the company announcing an extended partnership with the leading Canadian blockchain hardware firm ePIC Blockchain. 

ePIC mining rigs partnership

Argo, which is the only cryptocurrency mining firm listed on the London Stock Exchange, entered into a partnership with ePIC in 2021, when it agreed to purchase $8m (£6.3m) worth of its mining rigs. 

Announcing the extension, Argo CEO Peter Wall said that the deal would help the company develop its own custom immersion mining machines. 

Describing it as “a game changer”, Wall said the partnership would make mining cheaper and grant it “more granular control”.

May update reveals bitcoin production drop

The news was not enough to buck the downward momentum triggered by Tuesday’s revelation that Argo had mined 25% less bitcoin in May than in April. Having mined 166 bitcoin in April, this figure fell to 124 last month. 

May also saw Argo begin mining operations at its Helios facility in Texas, United States. It admitted that it experienced “some limited instances of unplanned downtime” while bringing it online. 

The firm also lamented recent high temperatures in Texas. The increased strain on the state’s grid and higher electricity prices prompted Argo to voluntarily reduce its energy use. 

Mining revenue falls by £2.4m

Reporting a fall in mining revenue from £5.52m in April to £3.1m in May, Argo also lamented the recent rise in difficulty mining bitcoin, stating: “The company's hashrate on Terra Pool produced substantially lower bitcoin than in previous months, primarily due to short-term probabilistic outcomes. The company continues to explore all options to optimize its hashrate across alternative pools.”

Argo Blockchain stock has almost halved since the start of the year, and has fallen by 83% since the 282p record high it enjoyed in February 2021. 

The company is by no means alone in losing market value. Competitors such as Hive Blockchain Technologies and Riot Blockchain both fell by over 70% since the start of 2022.

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