Bitcoin mining company posts Q3 gains of 75% despite falling BTC prices

1444
Bitcoin mining company posts Q3 gains of 75% despite falling BTC prices

Amid falling BTC prices and continuing volatility in the crypto market, publicly-traded Bitcoin mining company Argo Blockchain PLC (ARB:LSE) has reported 2019 third-quarter gains of 75%.

The UK-based company, which is listed on the London Stock Exchange (LSE), reported earnings of £3.6 million [US$4.4 million] for the three-month period ending September 30th, 2019.

By contrast, during that same period, the price of Bitcoin fell by more than 39% – from a high of around $13,045 on July 10 to a low of $7,862 on September 30.

According to CEO and Founder Mike Edwards, Argo’s gains were attributed to several factors, including competitive electricity prices and a lower operating cost base.

These factors resulted in a mining margin of 73%, which the company believes to be one of the “highest efficiency rates” in the market.

Furthermore, a new policy adopted in Q3 called for the company to convert mined Bitcoin to fiat on a regular, ongoing basis, enabling it to mitigate the impact of market volatility and maximize profits.

Quality mining hardware gives Argo an edge
Argo Blockchain executives and their families at the London Stock Exchange. (Image: London Stock Exchange Group)

Quality mining hardware gives Argo an edge

Commenting on the company’s performance, Edwards credits its investment in cutting-edge bitcoin mining equipment with providing a much needed competitive edge. 

“We are delighted with the mining results in the third quarter which, together with strong cash management, have helped us to maintain a robust balance sheet,” he said.

“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.”

Launched in 2017, Argo provides cloud-based mining as a Service (MaaS) platform to its customers, enabling them to mine Bitcoin (BTC), Ether (ETH), and a host of other cryptocurrencies.

At press time, Argo Blockchain has a market cap of £22 million and is trading at £7.50 per share, down 9.09% over the day.

Argo’s expansion plans

Argo Blockchain hopes to become the largest publicly listed crypto mining operation in 2020 and, to that end, plans to double the number of Bitcoin miners currently in production.

On the heels of installing 1,000 new miners last month, the company now plans to add roughly 6,000 more by the end of the year, bringing the total number of miners in operation to around 12,000.

In August of this year, Argo entered into an agreement with Canadian data center provider GPU.one that would expand its power capacity from 14 to 64 megawatts, an increase of more than 357%.

This increase will enable Argo to boost its Bitcoin mining capacity to 1,360 petahash (PH) and allow it to add up to 15,000 more miners to its operation.

Speaking about the company’s planned expansion, Edwards commented: “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”