London BTC says “foundations for growth are firmly in place” as miners and treasury expand

London BTC Company Ltd (LSE:BTC, OTCQB:VINZF) has set out an upbeat half-year update, with chairman David Lenigas stating “the foundations for growth are firmly in place,” as the group scales its mining fleet and adds to its stash of Bitcoin.

Lenigas said: “The past six months have been operationally rewarding for The London BTC Company Limited, despite a challenging trading environment for Bitcoin-related shares in the UK…

"Your board believes the foundations for growth are firmly in place, positioning us to strengthen the business significantly over the next half year and beyond.” He added that the company holds the London Stock Exchange ticker “BTC”, regards this as a branding asset, and “carries no debt”.

Operationally, the business has been busy. The miner lifted its average fleet from about 640 machines at the start of the period to 1,100 by October across sites in Indiana, Iowa, Nebraska, Texas and Labrador.

Bitcoin mining refers to running specialist computers that validate transactions on the network; in return, miners earn newly issued Bitcoin and fees.

Economics hinge on two things: the Bitcoin price and the cost of electricity, which is why London BTC concentrates in North America, where it says power terms are more favourable than in the UK.

Revenue for the six months to 31 August rose to £582,211 from £280,513 a year earlier, helped by higher computing power (often measured as “hash rate”, with petahash denoting one quadrillion calculations per second) sold through partner Luxor Technologies.

Expenses increased to just under £1.5 million from £551,036, reflecting a bigger team, listing and legal costs, and event spending.

The company reported a net loss of £1.2 million versus a £669,406 loss in the prior period. It also booked a £228,067 gain from trading shares in other Bitcoin-related businesses.

London BTC raised £6.1 million in fresh equity and deployed £6.6 million to build its Bitcoin position, ending the half with 86.033 Bitcoin held in institutional-grade custody.

Strategy remains two-pronged: keep adding machines to increase self-mined coins while growing a treasury of Bitcoin acquired outright.

Lenigas said: “With Bitcoin prices around $100,000, every additional miner enhances our potential for revenue and margin growth as the market appreciates further.”

The company is also pursuing a dual listing on Nasdaq, which management describes as “a key strategic priority” now that interim accounts have been published.

Chief executive Hewie Rattray said London BTC aims to “compound Bitcoin per share over time,” stressing “transparency, governance and alignment” as the group pushes ahead in the United States.