Argo Blockchain PLC on Monday said Bitcoin production fell in January, blaming a fall in hashprice and weather affecting its facilities.

Shares in Argo Blockchain were down 7.5% to 14.81 pence each in London on Monday morning.

The London-based cryptocurrency miner said it mined 124 Bitcoin in January, or 4.0 Bitcoin per day. This represents a 20% fall in daily production from December.

This was driven by a 16% decrease in Bitcoin-denominated hashprice, which in turn was driven by lower transaction fees on the Bitcoin network and higher network difficulty compared to December.

Argo Blockchain also cited, ‘to a lesser extent’, being affected by weather-related curtailments at its facilities in Quebec, Canada and its Helios facility in the US state of Texas.

‘At Helios, the company’s operations were curtailed in response to winter weather conditions which led to elevated power prices across Texas, particularly during Winter Storm Heather. The facility generates power credits during periods of economic curtailment, and the company’s share of power credits from January 2024 will offset a portion of the foregone revenue from curtailment,’ the company said.

Mining revenue in January was $5.3 million, down 19% from $6.6 million in December.

‘Our Bitcoin production decreased in January as transaction fees retreated from the temporary spike we saw in December. We also experienced some instances of curtailment as a result of winter weather in Quebec and Texas, which is a great reminder of how Bitcoin mining contributes to grid stability during extreme weather events. Bitcoin miners provide a unique source of baseload demand which can be quickly curtailed to free up electricity for other users on the grid,’ said Argo Blockchain Chief Executive Officer Thomas Chippas.

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