Argo Blockchain Reports Tenfold Rise in Bitcoin Mining Revenue in 2019
- Even though the firm generated $11 million in revenue in 2019, it still reported a drop from Q4 to Q3.
- The company also plans to increase the mining rigs it operates to 17,000 in Q1 of 2020, upping total hashing output to 650 petahashes.
Mining rigs stacked next to one another. Shutterstock
Bitcoin mining company Argo Blockchain has generated £8.5 million (around $11 million) in revenue for 2019, a tenfold increase than the previous year, the company said in a press release on 20 January.
Posted on the London Stock Exchange’s website, the press release reports that the firm is expecting its revenue for 2019 to be £8.5 million, which is a significant increase from its 2018 figure of £760,000 (around $987,000). Even though these numbers are not audited, the firm is expected to publish audited earnings sometime in April.
Listed on the main Market of the London Stock Exchange in August 2018, the company is operating mining rigs for profit, as well as providing Mining-as-a-Service (MaaS) to institutional investors. The firm’s mining capacity is reportedly based in Quebec, making use of the region’s cheap hydroelectric power, with it currently operating 13,364 devices.
According to the announcement, during its operation the company mined 432 Bitcoin (BTC) in Q4 2019, compared to the 426 BTC in Q3, but still saw a lower revenue of £2.66 million ($3.45 million) in Q4, compared to the £3.63 million ($4.7 million) in Q3.
The company commented on the decline, saying:
“The lower quarterly revenue is attributable to a drop in cryptocurrency prices, increased mining difficulty, and unfavourable foreign exchange rates towards the end of the year.”
The firm further said that even though its mining margins, the value of the currencies compared to the mining cost, fell from 73 percent in Q3 to 52 percent in Q4, continue to be “industry-best”.
Argo’s CEO, Peter Wall, commented:
“Our mining operations continued to generate industry-best mining margin in the last quarter despite a softening in market conditions from the previous quarter. Our state-of-the-art mining platform is performing as expected and with the expansion of our mining network on pace, along with the recent rise with the price of Bitcoin, Argo is well-placed for a strong year ahead.”
According to a 2 January press release, the firm has almost doubled its mining rigs since the start of 2020, with it having installed 6,375 Bitmain Antminer T17s since 1 January. The company has the goal of reaching 17,000 mining rigs by the end of Q1 2020, which will raise the power it contributes to the bitcoin network from 380 petahashes to over 650 petahashes.
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