This week, shares of blockchain mining companies rose. Argo Blockchain PLC was one of them (LSE: ARB). In addition, the shares of a firm listed on the London Stock Exchange soared this week after the company reported better-than-expected first-half revenue.
Revenue climbed by 180 percent to £31.1 million in H1 2020, up from £11.1 million. This entails a rise in output as well as a period of price volatility in digital currency. The mining margin for Argo was 81 percent, up from 39 percent a year before.
Despite a £6.2 million negative devaluation of digital assets and a £1.6 million share-based payment charge, the company’s EBITDA increased by 332 percent to £16.0 million in the first half. Pre-tax profits were £10.7 million, up from £500,000 the year before, while earnings attributable to shareholders were £7.21 million, up from £523,000 the year before.
Argo Blockchain mined 883 bitcoins this year, down from 1,669 the year before. They ascribed the drop mostly to half of the BTC subsidy reward in May. At the end of June, there were 1,268 BTC tokens in circulation, up from 127 at the same time last year.
Mining capacity increased from 685 petahash on December 31, 2020, to 1,075 petahash on June 30, 2021. In addition, Argo Blockchain announced more expansions earlier this year, including the purchase of 160 acres of land in West Texas to construct a new BTC mining plant. According to Argo Blockchain, the first stage of this facility is expected to be completed in the first half of 2022.
CEO Peter Wall stated,
- “We have capitalized on a change in market conditions in the first half of 2021 to deliver strong growth in both revenues and profits, demonstrating that our smart growth strategy is delivering value to shareholders.”