Argo Blockchain Increases Daily Bitcoin Production Despite Network Difficulty Spike
Rebeca Moen Mar 08, 2023 09:11
Argo Blockchain increased its daily Bitcoin production to 5.7 BTC per day in February, up from 5.4 BTC per day in January, despite a 10% increase in network difficulty.
Publicly-listed Bitcoin (BTC) mining firm Argo Blockchain has reported an increase in its daily Bitcoin production for the month of February, despite a significant spike in network difficulty. According to the operational update released on March 7, Argo mined 162 Bitcoin or BTC equivalents during the month, translating to a daily production rate of 5.7 BTC. This is a 7% increase from the 5.4 BTC per day produced in January.
Bitcoin mining difficulty is a measure that defines how hard it is to mine a BTC block. It requires more hash rate or additional computing power to verify transactions and mine new coins. In February, the BTC network difficulty surged to new all-time highs, hitting a difficulty rate of 43 trillion on Feb. 25, as per data from Blockchain.com.
Despite the network difficulty spike, Argo's production rate has increased, thanks to the company's investment in new mining equipment and a focus on increasing efficiency. The news comes amid the industry anticipating the next Bitcoin difficulty adjustment expected to occur on March 10. According to data from BTC.com, the next difficulty is estimated to reach 43.4 trillion.
Argo Blockchain sold its flagship mining facility Helios to Mike Novogratz's crypto investment firm Galaxy Digital amid the tough crypto market of 2022. However, despite the sale, Argo has continued to mine using Galaxy's facility, and its production rate has been steadily increasing. Months before the transaction, Argo's monthly BTC mining generated more than 200 BTC.
Argo is not the only mining firm that seems unaffected by the BTC difficulty spike in February. Other miners like Cipher Mining produced 16% more Bitcoin over January, and Marathon Digital increased its average daily Bitcoin produced by 10% compared to January. However, Hut 8 mining firm saw its daily Bitcoin production rate drop from 6 BTC in January to 5.6 BTC in February.
Argo Blockchain has been focusing on expanding its operations to capitalize on the increasing demand for Bitcoin mining services. The company recently announced plans to establish a Bitcoin mining facility in West Texas, which is expected to have a capacity of up to 200 megawatts and is slated to begin operations in Q4 2022.
In conclusion, despite the network difficulty spike, Argo Blockchain's focus on increasing efficiency and investment in new equipment has led to an increase in its daily Bitcoin production rate. The company's expansion plans and investment in new facilities suggest that it is well-positioned to capitalize on the growing demand for Bitcoin mining services.
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