Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) has entered a strategic hosting agreement with an undisclosed party to host and operate mining machines at its Helios facility in Texas.
Up to 32 megawatts of power capacity will be provided by Argo, enough to power over 10,000 mining machines.
Argo will receive 25% of the net profits generated from the Bitcoin mined by the hosted machines.
“We are excited about our strategic hosting agreement, which enables us to utilize excess capacity at Helios and further increase our hash rate,” Peter Wall, Argo chief executive, said.
In August, Argo mined 235 BTC or Bitcoin Equivalents compared to 219 the previous month due to a higher hash rate capacity.
Mining revenue in the month was £4.39mln based on daily foreign exchange rates and crypto prices, up from £3.89mln in July.
This was generated at a mining margin of 20%, significantly lower than the 37% seen the month before due to an 11% reduction in Bitcoin’s price and high power costs at Helios.
“While our mining margin is lower than expected, the recent high natural gas and electricity prices are a temporary reflection of broader market dislocations and we are confident that electricity prices will align with historical trends in the near future,” Wall added.
The company held 1,098 Bitcoin at the end of August, with 244 being BTC equivalents.
Shares jumped 9.1% to 37.8p in early trade.