Q3 Report: Argo Hits $26M in Bitcoin Mining Revenue
Argo Blockchain, one of the largest bitcoin mining firms in the world, has reported a mining revenue of $26 million in Bitcoin. Argo said in its Q3 2021 report that it mined 597 BTC in that period. At the current price of $61,703.50 (as of press time), that figure is equivalent to approximately $36.84 million. This is a record bitcoin mining profit.
Argo Blockchain has sustained a velocity in cryptocurrency, especially in bitcoin mining, in recent times; in September, Argo had 1,836 BTC in holdings, making it one of the largest bitcoin holders in the industry.
In the report, Argo explained that its mining costs were around $6,293 per bitcoin. This amounts to approximately $3.76 million for all 597 BTC. The report stated a gross and net margin of 120% and 85% respectively, earning Argo a hefty profit of $17.3 million. This lifts Argo’s profits since the year began to a respectable $44.4 million; Argo earlier posted a profit of $27.1 million for the first half of the year.
Argo’s Powerful Bitcoin Mining Facility
Argo has a powerful bitcoin located in Texas. The facility, named Helios, is to be powered by a 200-megawatt renewable energy plant. The plant is expected to receive 20,000 new Bitmain Antimers before mid-2022. Argo has received loan fundings from Galaxy Digital and an unnamed source to the tune of $25 million and $20 million respectively. Argo has announced that the funds will be used to develop the Helios facility and increase its mining capacity. From its current hashrate of 1.07 Exahashes, Argo hopes to hit 3.7 Exahsashes by Q2 2022.
Argo has four bitcoin mining facilities with the least being its first, Mirabel, with a 5 MW capacity. The firm has since implemented solutions to move some of its energy generation to renewable energy.
Bitcoin Mining and Crypto Regulation
The US, Canada, Kazakhstan, and the surrounding regions are known for being crypto-friendly. Crypto miners from all over the world have moved to these countries to establish mining farms. Following China’s ban on cryptocurrencies and its increased crackdown on crypto mining facilities, reports have emerged of miners moving to countries with favorable mining policies and renewable energy sources.
Cryptocurrency mining has long been criticized for its heavy electric energy consumption; countries have complained of bitcoin miners using up a large portion of the national grid supply. Due to this, energy rates have increased in most places where bitcoin is mined. To stem this, bitcoin miners are looking towards renewable energy sources. In May, Elon Musk said that Bitcoin must shift to renewable energy for it to attain its true potential.
Argo’s Helios mining facility is built on a 320-Hectare land that the firm intends to build a renewable energy plant on. This will set the tone for bitcoin miners around the world to adopt environmentally-friendly mining strategies and hopefully win government support around the world. As Bitcoin enters its best years yet, more miners will be needed.
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