Argo Increases BTC Production Amid High BTC Network Difficulty
Argo Blockchain, a publicly traded Bitcoin mining company, has reported an increase in its daily production of BTC despite a notable surge in network difficulty. According to the operational update released on March 7th, Argo mined 162 BTC or BTC equivalents in February, translating to a daily output of 5.7 BTC.
BTC Network Difficulty Reached ATH In February
Despite a 10% month-over-month rise in average network difficulty, Argo Blockchain managed to increase its daily production rate of Bitcoin in February by 7% compared to January, where the firm produced 5.4 BTC per day.
For context, mining difficulty measures the difficulty level in mining a BTC block. Higher difficulty needs more computing power or hash rate to verify transactions and generate new coins.
Blockchain.com’s data reveals that BTC network difficulty reached a new all-time high in February, with a difficulty rate of 43 trillion recorded on February 25th. Meanwhile, the latest news comes as the industry awaits the upcoming Bitcoin difficulty adjustment scheduled for March 10th.
According to data from an on-chain platform, BTC.com, the next difficulty is projected to reach 43.4 trillion. Argo Blockchain sold Helios, its primary mining facility, to Galaxy Digital, Mike Novogratz-owned crypto investment company, following the challenging cryptocurrency market conditions of 2022.
Although Argo continued to mine with the aid of Galaxy’s facility, its BTC production declined following the transaction. Before the sale, Argo usually produces over 200 BTC monthly.
However, Argo Blockchain is not the only mining entity unaffected by last month’s BTC difficulty spike. Other crypto miners like Cipher Mining have generated 16% more Bitcoin than in January.
Additionally, Marathon Digital witnessed a 10% rise in its average daily production of Bitcoin last month compared to January. Conversely, Hut 8 mining firm experienced a reduction in its daily Bitcoin production rate from Bitcoin in January to 5.6 last month.
Investors File Class-action Lawsuit Against Argo Blockchain
In other news, Argo Blockchain and several of its executives and board members are facing a class-action lawsuit filed on January 26th by investors of the crypto mining firm. The lawsuit alleges that Argo made untrue statements and omitted key information during its initial public offering (IPO) in 2021.
Specifically, it failed to disclose important details such as its vulnerability to network difficulties, electricity costs, and capital constraints. “The offering documents were allegedly prepared negligently and consequently contained statements of material fact that were untrue or omitted,” the lawsuit read.
According to the investors, the alleged untrue statements and omissions in the offering documents led them to believe that Argo Blockchain’s business was more sustainable when it wasn’t.
This, in turn, resulted in an overstatement of the miner’s financial prospects. The complaint highlights that if the investors had been aware of the truth, they would not have acquired or purchased the stock.
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