Argo Blockchain mines the crypto vein
- Argo Blockchain launches Nasdaq ADS offer
- Argo Blockchain set to continue to benefit from global mining disruption, says broker finnCap
- Argo Blockchain reports 180% revenue increase in first half of the year
Quick facts: Argo Blockchain PLC
Price: 167 GBX
Market Cap: £637.66 m
About the company
Argo is a publicly-traded blockchain technology company focused on large-scale cryptocurrency mining.
Headquartered in London, England, Argo is the only cryptocurrency mining company listed on the London Stock Exchange.
Its energy-efficient, powerful mining operations are strategically located throughout North America.
How it is doing
The company, in a statement, said it is to sell 7.5mln ADS in the planned IPO with each ADS comprising ten ordinary shares of Argo (priced at 131p at Monday’s close).
Argo earlier this month said it had become the first publicly-traded cryptocurrency miner to become climate positive from scope-one, scope-two and greenhouse gas (GHG) emissions from the value chain associated with its mining operations.
The blockchain technology company mined a total of 206 Bitcoins or Bitcoin equivalents in the month, compared to 225 in July and said the tally for the first eight months of 2021 amounted to 1,314. Mining margin was around 86% for the month.
What the brokers say
Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, FRA:0XP), the cryptocurrency miner, is expected to continue to benefit from the disruption to global mining caused by the Chinese government’s crackdown on Bitcoin mining, according to broker finnCap.
The Chinese government’s May announcement that it would restrict mining of the cryptocurrency has materially reduced mining difficulty and led to a drop in the hash rate.
“As the impacts of the changes in China become clearer through H2 21, we will closely watch the development of the three key variables for Argo: the hash rate/network mining difficulty, the cost of mining machines, and the Bitcoin price,” finnCap said in a note on Tuesday.
What management says
Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, FRA:0XP) (LON:ARB) (OTCQX:ARBKF) CEO Peter Wall tells Proactive long-term profitability and sustainability is paramount for the group, as it reports a profit surge in its first half as a boom in Bitcoin prices and an expansion of its crypto mining operations lifted revenues.
Wall says the crypto miner reported a pre-tax profit of £10.7mln, up from £0.5mln in the prior year, while revenues surged 180% to £31.1mln, reflecting the company’s increase in production as well as the rise in Bitcoin prices over the period.
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