We are excited about the future prospects for the sector and continue to be focused on bringing greater institutionalisation and growth to the digital assets and blockchain technology ecosystem
Mike Edwards, executive chairman
What it does
Crypto mining is the process of using powerful computers to solve complex mathematical equations and validate transactions on a decentralised ledger system known as a blockchain.
These transaction ‘blocks’, once they are completed, reward the miner with cryptocurrency such as Bitcoin for their efforts.
Argo uses large banks of computers to mine large amounts of cryptocurrency which can then be sold for fiat money.
- The company has increased the number of mining machines in operation to 7,000, with another 10,000 machines expected to be delivered in batches from December 2019 taking its total capacity to 17,000 machines by the end of the first quarter of 2020
- For its third quarter ended 30 September, Argo reported a 75% increase in revenues compared to the second quarter to £3.6mln
- The company signed a deal in mid-August to increase its electricity supply by 357%, which in turn would allow it to run 15,000 more mining machines, taking its Bitcoin mining capacity to 1,360 petahash and making it the world’s largest publicly listed crypto miner
- For July, Argo reported that it had generated 163 bitcoins, equivalent to around £1.36mln based on a bitcoin price of US$10,122 as of the end of the month
- In its second-quarter results, the company said the performance of its crypto mining activities had beaten expectations
What the boss says: chairman Mike Edwards
"We are delighted with the mining results in Q3 which, together with strong cash management, have helped us to maintain a robust balance sheet. Our investment in the most advanced mining hardware on the market continues to provide us with a competitive edge even as mining conditions become more challenging.
"During the third quarter the Company adopted a policy to exchange its mined Bitcoins into fiat currency on a regular basis to avoid additional exposure to Bitcoin pricing. We remain focussed on our revenue and bottom line, while executing our growth strategy to become the world's largest publicly listed miner next year."
With the shares trading around 6.6p as of 12 November 2019, Argo carries a market cap of £19.2mln.