Bitcoin mining stock up 200% as machines ‘pay for themselves’

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

Shares in UK-based Bitcoin mining company, Argo Blockchain (LON:ARB), have soared after the company today revealed new mining hardware had delivered better-than-expected returns.

In April this year, Argo purchased 1,000 Bitmain Z11 Antminer machines along with 2,267 S17 Antminers for use at the company’s Bitcoin mining facility in Quebec, Canada.

Today, Argo revealed the Bitmain Z11 Antminers have already paid for themselves after becoming fully operational in May.

“The Company is pleased to report that these machines have achieved a 100% payback on their investment, thereby recouping their full cost in under half the time the Company had estimated,” stated a London Stock Exchange market release.

The company says it’s also well ahead of schedule to recoup the costs of the S17 Antminers.

“Our decision to move fast with a major expansion of mining infrastructure is reaping strong returns much earlier than expected.  I am confident this strategy will continue to pay off long-term,” said Argo’s Executive Chairman, Mike Edwards.

The news was welcomed by investors –  Argo’s share price rising by more than 5% for the day.

Since May Argo’s share price is now up a whopping 200%.

Mining investment to continue

Argo plans to continue investing in its Bitcoin mining capabilities.

In an Operational Update published earlier this month, the company said it expects to have an additional 7,000 state-of-the-art mining machines delivered to Quebec and in production by the end of Q4 2019.

During July, Argo’s existing facilities generated 163 Bitcoins. The company claims those Bitcoins were mined at a margin of around 80%, making it one of the most efficient crypto miners in the world.

Argo Blockchain became the first Bitcoin mining company on the London Stock Exchange main market, when it listed in August 2018.

Its recent mining fortunes and share price strength, however, isn’t mirrored by all Bitcoin mining stocks.

Micky recently reported on three other global Bitcoin mining stocks which have delivered mixed results for investors, despite the recent Bitcoin price rise.

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