Home ›› 10 Sep 2022 ›› Corporate
Argo Blockchain plc, a global leader in cryptocurrency mining, is pleased to announce that it has entered into a strategic hosting services agreement (the "Hosting Agreement") with an undisclosed third party.
As part of the Hosting Agreement, Argo will host and operate mining machines owned by the said third party at its Helios facility in Dickens County, Texas. Argo has committed to providing the undisclosed third party with up to 32 MW of power capacity, which is enough electricity to power more than 10,000 mining machines.
The Hosting Agreement includes a profit-sharing arrangement whereby Argo receives 25 per cent of the net profits generated from the Bitcoin mined by the hosted mining machines. This arrangement ensures the alignment of both parties.
During the month of August, Argo mined 235 Bitcoin or Bitcoin Equivalents (together, BTC) compared to 219 BTC in July 2022. The increase in BTC mined is primarily due to an increase in total hashrate capacity at the Helios facility compared to the previous month.
The Company is continuing to install the new Bitmain S19J Pro machines at Helios, having achieved a total hashrate capacity of 2.5 EH/s by the end of August. Argo remains on track to complete the installation of the Bitmain machines by October 2022, which will increase its total hashrate capacity to 3.2 EH/s.
As of August 31, 2022, the Company held 1,098 Bitcoin, of which 244 were BTC Equivalents. The Company closely monitors market conditions and is actively using a variety of derivatives to manage BTC holdings and mitigate risk exposure.
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in August amounted to £4.39 million [$5.23 million*] (July 2022: £3.89 million [$4.73 million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of 20% for the month of August (July 2022: 37%).
