- The company explained this by the depreciation of BTC
- The company remained afloat only thanks to an agreement with Galaxy Digital
- In Q1 2023, a miner mined an average of 5.5 BTC per day
Last year was a difficult year for both exchanges and landers and miners. Some of the “farmers” were forced to leave the market under pressure from external factors, including the depreciation of BTC and the forced liquidation of loans backed by equipment.
This is clearly seen in the example of Argo Blockchain. The miner avoided bankruptcy solely thanks to an agreement with Galaxy Digital. Recall that the company sold its Helios facility in Texas for $65 million.
But even considering this financial results companies over the past year were deplorable. The net loss in 2022 was $240.2 million. For comparison, the miner ended 2021 with a net profit of $38 million.
The company explained this by the depreciation of the BTC portfolio as a result of the depreciation of the asset. In 2022, the price of bitcoin collapsed by 60%.
As for other indicators, the situation is slightly better here. The miner increased the total hashrate for the year by 55%, up to 2.5 EH / s. The company also plans to commission 2,870 BlockMiner installations based on Intel Blockscale ASIC chips in Q3 2023.
During the year, the company mined 5% more BTC. But the mining margin fell from 84 to 54%. Which, together with depreciating the asset, affected the income of the miner.
The average efficiency in Q1 2023 was 5.5 BTC per day. The company is slowly ramping up production capacity and expects the financial situation to improve by the end of this year.