Saturday, January 28, 2023
  • Mike Edwards and Peter wall founded Argo Blockchain in 2018 to provide the necessary support and facilities that crypto miners needed to generate and create new crypto coins
  • Wall Street has expressed concerns about Argo Blockchain, especially with the ongoing crypto winter
  • With the looming threat of Argo Blockchain closing, many have wondered if crypto mining is obsolete for the typical crypto miner

Crypto trading has been a global venture that many have participated especially in Africa. Although during the initial creation of crypto coins, when Bitcoin made its debut, it brought the concept of crypto mining with it. Over the years, crypto miners earned through their devices rather than consistently following the trends and the values of coins.

Many refer to simpler times as crypto miners merely needing the right equipment. Despite crypto trading having overshadowed crypto mining, creating new coins is still in demand. Various companies have dedicated their resources to providing and supporting crypto mining. In recent news, Argo Blockchain, the leading crypto mining franchise, recently started investing in the stock exchange. Unfortunately, it received significant financial blows, with Wall Street threatening a negative cash flow.

Background on Argo Blockchain

Mike Edwards and Peter wall founded Argo Blockchain in 2018 to provide the necessary support and facilities that crypto miners needed to generate and create new crypto coins. Over the years, they have facilitated major crypto exchange companies such as Bitcoin and Ethereum. 

Crypto mining might not require much human effort it does offer various demerits. The sheer power needed for a blockchain network to create crypto coins is astonishing. This has led to significant lawsuits against major crypto-mining industries and has painted a negative picture of crypto miners.

Also, Read Cryptojacking: Crypto hack African crypto miners should know

The average power consumption of Ethereum before the Merge was 149 terawatts. A number that rivals the total power consumption of a country. Argo blockchain opted for a more climate-positive route by focusing on green energy to curb the inevitable lawsuits and bad reputation.

argo blockchain

Crypto mining firm Argo Blockchain experienced severe losses in the stock exchange market, and bankruptcy is rearing.[Photo/BusinessInsider]

The source of Argo’s energy is Hydro and other renewable and clean sources. Each facilitates the same amount of power but with fewer repercussions.

Its consistency and use of renewable energy boosted not only its sales but also its opportunities. Its efforts landed it on the London Stock Exchange after raising over 25 million Euros by placing 156250000 ordinary shares at 16p each. In doing this, it valued the company at a market capitalization of 47 million Euros on floatation.

Argo has integrated crypto mining with the stock exchange.

Argo Blockchain Faces liquidation.

Cryptocurrency and the stock exchange have recently allied many need help understanding. Wall Street has expressed concern about Argo Blockchain, especially with the ongoing crypto winter. After suffering various hits by low bitcoin prices and high energy costs, the crypto mining company is slowly losing its grip within the top-ranked franchises in crypto. 

Argo shares on the London Stock Exchange have started plummeting since October. In desperation and an attempt to salvage its rating, Argo stated it would sell various bitcoin mining rigs and other shares to cope with the problematic tides of the month.

DA Davidson’s Chris Brendler essentially made things worse by downgrading the stock to neutral, indicating signs of expected bankruptcy. Core Scientific also warned users to beware of the sudden failure of operations within Argo Blockchain. Eventually, making things even worse for the crypto-mining community.

Will Crypto mining survive this new rupture

With the looming threat of Argo Blockchain closing, many have wondered if crypto mining is obsolete for the typical crypto miner. Various debates exist on whether to leave crypto mining to the different exchange platforms and merely focus on crypto trading.

The recent transition to Proof-of-Stake has yet to make things necessarily easy. PoS is the next evolution of crypto mining, and many have opted to change with the times. The creation of crypto coins is still a guarantee its the how that needs to change.

Also, Read African blockchain innovators: The minds behind Africa’s top DeFi projects.

PoW is still operational and Bitcoin, with several other altcoins, still heavily uses it. The goal of PoS is to replace PoW eventually, but it would need the complete transition of the entire blockchain network. A feat that will require significant time, the very deployment of PoS took years, so there is still hope for the typical crypto miner.

As for Argo Blockchain, they divulged no immediate response. Whether or not it survives this recent downgrade will merely be up to strategic thinking and perseverance; all we can do is wait and observe

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Leave a Comment

Web3 Africa

Community

We believe that the most important thing in the Blockchain revolution is the ability of people to understand and embrace the change. Our journalism standards – impartiality, truthfulness, transparency, and accuracy – will help you navigate this extremely dynamic world.

@2022  All Right Reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?