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London-listed Argo posted a drop in revenue in May, likely due to the bitcoin halving event.
According to the mining company’s monthly operating update, monthly mining margins – revenue minus operating costs – were about 34% in May, down from 39% in April. Overall, the company mined 252 bitcoins (~ $ 2.4 million at press time), down from 319 bitcoins (~ $ 3 million) a month earlier.
This slight drop in revenue comes shortly after bitcoin’s halving, which took bulk premiums from 12.5 to 6.25 BTC last month. Argo says it has been able to mitigate potential halving disruptions by investing in “state of the art” mining rigs.
Argo, listed on the London Stock Exchange (LSE) in 2018, currently operates 18,000 mining rigs with a combined total hashpower of 730 Petahash, a 244% increase from the end of 2019.
With the halving event approaching mid-month, it’s hard to say what effect it may have had on Argo’s mining revenues.
In a statement, CEO Peter Wall said Argo anticipated Bitcoin’s mining difficulty will drop between 4% and 6% at the next adjustment, scheduled for later this week. “This change should lead to improvements in our overall mining margins,” he said.
Argo’s share price remained relatively unchanged on the LSE, closing the UK trading day at £ 0.04 (~ $ 0.05).
