The London-listed Argo Blockchain, which is much interested in large-scale crypto mining, was looking for a profit in 2020, along with strong revenue growth, with the bitcoin’s rise. The net profit for Argo in 2020 was £1.7m as compared to the net loss of £0.7 m a year ago, which has along with the increase in revenue by 120% to £19 m.
It is said that the first quarter of 2021 was having most of the profit. It was driven by the rise in Bitcoin price and having a much stable mining difficulty. The company was founded in 2017, and it went public on London Stock Exchange in 2018.
Peter Wall, the CEO of Argo, said, “Argo crossed a major inflection point in 2020 in its history by achieving full-year profitability on a 120% increase in revenue, our second consecutive year of triple-digit top-line growth.”
The company is having a share price, which is soaring high in recent months. It is going up from 5p at the beginning of October to the level of £2.84 in February.
This is being coincided with the volatility of bitcoin. It is hitting the all-time high from earlier this month. It is crossing $64000, which is up by $10000, during the starting of October. It was currently trading at the level of $54456.473.
The total number of bitcoins obtained from mining is up as Argos rose from 1330 in 2019 to 2465 in 2020. It is having an 85% increase in its annual production. Despite the challenging market conditions, bitcoin is halving in May 2020 due to Covid.
As of March 31, the group held 764 bitcoins, along with its equivalents. It is valued at the level of £32.6 m, which is based on the bitcoin price of that time. It has also got raised by £49, which is much new equity for the investments in mining rigs. Blockchain with fintech ventures includes many significant equity investments in Pluto Digital Assets.
It believes that a well-placed benefit from the robust trading conditions and buoyant demand is coming. It is planning to continue with the new mining capacity.
Wall said, “With a proven management team, world-class mining infrastructure, and strong tailwinds from the industry’s recent growth, the board looks forward to the future with great confidence.”
Last week, Argo made an announcement of the plan for a new cryptocurrency mining facility in West Texas with a focus on renewable energy. This is coming amidst the growing scrutiny, along with the environmental impact of bitcoin and other cryptos.