Bitcoin Miner Argo Raises Hashrate Guidance Thanks to Intel Mining Chips

Bitcoin miner Argo Blockchain’s raised 2022 hashrate guidance to 5.5 exahash per second (EH/s), an almost 50% increase from previous guidance of 3.7 EH/s, mostly driven by mining rigs that use Intel’s new chips.

“With our mining operations at Helios expected to commence in May, along with the development of custom mining machines using Intel’s next-generation Blockscale ASIC chips, Argo is well-positioned to continue its growth with a focus on delivering for our shareholders,” said CEO Peter Wall in a statement.

On April 4, Chip giant Intel (INTC) launched its second-generation bitcoin mining chip, called “Intel Blockscale ASIC,” which will offer miners more efficient mining rigs than most models available in the market. Bitcoin miners Argo Blockchain, Hive Blockchain and Griid Infrastructure as well as giant Block (formerly Square) will be among the first customers to receive the new Intel Blockscale ASIC.

The miner also said the initial 200 megawatt (MW) out of its capacity of up to 800MW for its Helios projects in Dickens Country, Tex.is expected to be operational in May. The additional capital spending to complete this first phase is expected to be in the range of $125 million to $135 million, which will be funded mainly through debt and proceeds from selling a portion of mined bitcoins each month.

Beyond 2022, Argo expects to grow its hashrate to more than 20 EH/s over the next few years as the additional 600MW capacity at its Helios facility comes online.

Argo also reported 2021 sales of $100.1 million, which beat the average analyst estimate of $98.3 million, according to FactSet data. Its 2021 net income was $41.5 million, lower than the consensus estimate of $45.3 million.