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Argo Blockchain Sees 2,033% Jump in 2021 Net Income

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Argo Blockchain (LON: ARB) has released its annual financials for 2021, reporting a 291 percent increase in revenue to £74.2 million ($100.1 million). It was driven by both the company’s operational improvements and the overall industry effects.

Argo highlighted multiple factors that benefited its business last year: a significant increase in its hashrate, a temporary drop in Bitcoin  mining difficulty 
Mining Difficulty

Mining difficulty is measure of how difficult it is to find a hash below a given target. For example, the Bitcoin network, or another Proof-of-Work (PoW) crypto network, has a global block difficulty. Valid blocks must have a hash below a specific target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares.Looking at the Bitcoin network specifically, mining difficulty is designed to adjust every 2016 blocks, or approximately every two weeks. This adjustment is dictated by changes in the network’s hashrate and occurs regularly. Such changes constitute an attempt to ensure that the network continues to solve new blocks at a rate of one every 10 minutes.What Determines Mining Difficulty?Mining difficulty is determined by several factors, including how many miners there are on a cryptocurrency network. As difficulty increases, miners need increasingly complicated (and expensive) equipment to keep up.If the hashrate during the past two weeks has increased, then this surmises that the difficulty will go up as well, making mining more challenging. However, if the hashrate has dropped, the difficulty level will decrease, making blocks easier to solve. This scenario is extremely uncommon.There is no maximum mining difficulty for the Bitcoin network. If use of the Bitcoin network continues to increase, the mining difficulty of the Bitcoin network could also increase until all Bitcoins are mined.Eventually, a situation can occur in which a relatively large proportion of miners cannot keep up with mining constraints.Under these circumstances, miners are forced to capitulate and stop entirely. The hashrate would consequently decrease and, eventually, the difficulty would receive a downward reset.

Mining difficulty is measure of how difficult it is to find a hash below a given target. For example, the Bitcoin network, or another Proof-of-Work (PoW) crypto network, has a global block difficulty. Valid blocks must have a hash below a specific target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares.Looking at the Bitcoin network specifically, mining difficulty is designed to adjust every 2016 blocks, or approximately every two weeks. This adjustment is dictated by changes in the network’s hashrate and occurs regularly. Such changes constitute an attempt to ensure that the network continues to solve new blocks at a rate of one every 10 minutes.What Determines Mining Difficulty?Mining difficulty is determined by several factors, including how many miners there are on a cryptocurrency network. As difficulty increases, miners need increasingly complicated (and expensive) equipment to keep up.If the hashrate during the past two weeks has increased, then this surmises that the difficulty will go up as well, making mining more challenging. However, if the hashrate has dropped, the difficulty level will decrease, making blocks easier to solve. This scenario is extremely uncommon.There is no maximum mining difficulty for the Bitcoin network. If use of the Bitcoin network continues to increase, the mining difficulty of the Bitcoin network could also increase until all Bitcoins are mined.Eventually, a situation can occur in which a relatively large proportion of miners cannot keep up with mining constraints.Under these circumstances, miners are forced to capitulate and stop entirely. The hashrate would consequently decrease and, eventually, the difficulty would receive a downward reset.
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, and a rise in Bitcoin’s fiat value.

The company even improved its mining margin to 84 percent from the previous year’s 41 percent. It was mostly due to the drop in global  hashrate 
Hash Rate

A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.

A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.
Read this Term
after the ban on Bitcoin mining in China in May 2021.

The impressive operational figures pushed the EBITDA of the Bitcoin mining company to £52.9 million ($71.4 million), which was a jump of 594 percent. The net income of the company stood at £30.8m ($41.5 million), which is a year-over-year increase of 2,033 percent.

“2021 was truly a year of transformation for Argo as we accomplished key milestones to strengthen the foundation of the Group and position us for long-term success,” said Argo’s CEO, Peter Wall.

Mined Less Bitcoins

The company mined 2,045 Bitcoins last year, which was 17 percent lower than in 2020. The decrease was due to the halving of the Bitcoin mining rewards. At the end of the year, Argo held cash and digital assets amounting to £92.6 million ($124.9 million). This figure jumped to 2,700 Bitcoin and Bitcoin equivalents valued at £93.6 million ($122.9 million) at the end of March 2022.

Meanwhile, Argo scaled its operations last year with acquisitions. It bought the Texas-based Helios project with a power capacity of up to 800MW and two data centers in Quebec, Canada with a combined capacity of 20MW. The operations at Helios is expected to begin in May 2022.

Furthermore, it purchased 20,000 Bitmain S19J Pro mining machines which are expected to be installed by October 2022.

“The acquisition of Helios provided us with the opportunity to build a best-in-class, vertically-integrated facility with access to low-cost and sustainable electricity, which is unmatched by our peers,” said Wall.

Argo Blockchain (LON: ARB) has released its annual financials for 2021, reporting a 291 percent increase in revenue to £74.2 million ($100.1 million). It was driven by both the company’s operational improvements and the overall industry effects.

Argo highlighted multiple factors that benefited its business last year: a significant increase in its hashrate, a temporary drop in Bitcoin  mining difficulty 
Mining Difficulty

Mining difficulty is measure of how difficult it is to find a hash below a given target. For example, the Bitcoin network, or another Proof-of-Work (PoW) crypto network, has a global block difficulty. Valid blocks must have a hash below a specific target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares.Looking at the Bitcoin network specifically, mining difficulty is designed to adjust every 2016 blocks, or approximately every two weeks. This adjustment is dictated by changes in the network’s hashrate and occurs regularly. Such changes constitute an attempt to ensure that the network continues to solve new blocks at a rate of one every 10 minutes.What Determines Mining Difficulty?Mining difficulty is determined by several factors, including how many miners there are on a cryptocurrency network. As difficulty increases, miners need increasingly complicated (and expensive) equipment to keep up.If the hashrate during the past two weeks has increased, then this surmises that the difficulty will go up as well, making mining more challenging. However, if the hashrate has dropped, the difficulty level will decrease, making blocks easier to solve. This scenario is extremely uncommon.There is no maximum mining difficulty for the Bitcoin network. If use of the Bitcoin network continues to increase, the mining difficulty of the Bitcoin network could also increase until all Bitcoins are mined.Eventually, a situation can occur in which a relatively large proportion of miners cannot keep up with mining constraints.Under these circumstances, miners are forced to capitulate and stop entirely. The hashrate would consequently decrease and, eventually, the difficulty would receive a downward reset.

Mining difficulty is measure of how difficult it is to find a hash below a given target. For example, the Bitcoin network, or another Proof-of-Work (PoW) crypto network, has a global block difficulty. Valid blocks must have a hash below a specific target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares.Looking at the Bitcoin network specifically, mining difficulty is designed to adjust every 2016 blocks, or approximately every two weeks. This adjustment is dictated by changes in the network’s hashrate and occurs regularly. Such changes constitute an attempt to ensure that the network continues to solve new blocks at a rate of one every 10 minutes.What Determines Mining Difficulty?Mining difficulty is determined by several factors, including how many miners there are on a cryptocurrency network. As difficulty increases, miners need increasingly complicated (and expensive) equipment to keep up.If the hashrate during the past two weeks has increased, then this surmises that the difficulty will go up as well, making mining more challenging. However, if the hashrate has dropped, the difficulty level will decrease, making blocks easier to solve. This scenario is extremely uncommon.There is no maximum mining difficulty for the Bitcoin network. If use of the Bitcoin network continues to increase, the mining difficulty of the Bitcoin network could also increase until all Bitcoins are mined.Eventually, a situation can occur in which a relatively large proportion of miners cannot keep up with mining constraints.Under these circumstances, miners are forced to capitulate and stop entirely. The hashrate would consequently decrease and, eventually, the difficulty would receive a downward reset.
Read this Term
, and a rise in Bitcoin’s fiat value.

The company even improved its mining margin to 84 percent from the previous year’s 41 percent. It was mostly due to the drop in global  hashrate 
Hash Rate

A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.

A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.
Read this Term
after the ban on Bitcoin mining in China in May 2021.

The impressive operational figures pushed the EBITDA of the Bitcoin mining company to £52.9 million ($71.4 million), which was a jump of 594 percent. The net income of the company stood at £30.8m ($41.5 million), which is a year-over-year increase of 2,033 percent.

“2021 was truly a year of transformation for Argo as we accomplished key milestones to strengthen the foundation of the Group and position us for long-term success,” said Argo’s CEO, Peter Wall.

Mined Less Bitcoins

The company mined 2,045 Bitcoins last year, which was 17 percent lower than in 2020. The decrease was due to the halving of the Bitcoin mining rewards. At the end of the year, Argo held cash and digital assets amounting to £92.6 million ($124.9 million). This figure jumped to 2,700 Bitcoin and Bitcoin equivalents valued at £93.6 million ($122.9 million) at the end of March 2022.

Meanwhile, Argo scaled its operations last year with acquisitions. It bought the Texas-based Helios project with a power capacity of up to 800MW and two data centers in Quebec, Canada with a combined capacity of 20MW. The operations at Helios is expected to begin in May 2022.

Furthermore, it purchased 20,000 Bitmain S19J Pro mining machines which are expected to be installed by October 2022.

“The acquisition of Helios provided us with the opportunity to build a best-in-class, vertically-integrated facility with access to low-cost and sustainable electricity, which is unmatched by our peers,” said Wall.

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