Argo Blockchain, a British company that owns Bitcoin mines, released its financial report for August. The miner increased its earnings by 2.3 million pounds to 6.38 million pounds ($9.3 million) this month, despite a drop in production to 206 BTC from 225 BTC mined in July. Most of the Bitcoin received is put in reserves, which totaled 1,659 BTC at the end of August, with only 61 coins sold on the market.
Investors reacted positively to the release of reports, the company’s shares on the London Stock Exchange added 3.35%. However, the current rate of ARB securities is still below the highs by 50%. Despite the close connection of business revenues with Bitcoin, investors have not fully recouped the cryptocurrency’s recovery in Argo Blockchain shares. Demand for the assets has not increased the company’s plans to go public on NASDAQ. An application was filed Aug. 17, but the U.S. SEC has yet to approve the offering.
Investors may have realized the risk of investing in crypto mining after Chinese authorities banned mining on the mainland. The development of mines can also be hindered by climate restrictions in developed countries, which can increase the cost of electricity, as well as changes in U.S. tax laws.
The United States is now seen as a major migration country for miners. If the laws there lead to the closure of mines, Bitcoin’s hash rate will return to the lowest levels of the year, and the value of the cryptocurrency will fall below $30,000. In this case, miners’ shares would be devalued because of the high risk of unprofitability of the business.
Link to financial report Argo Blockchain: