The directors consider Argo to be one of the most efficient miners in the sector and well placed to capitalise on the increase in the price of Bitcoin
Peter Wall, chief executive
What it does
Crypto mining is the process of using powerful computers to solve complex mathematical equations and validate transactions on a decentralised ledger system known as a blockchain.
These transaction ‘blocks’, once they are completed, reward the miner with cryptocurrency such as Bitcoin for their efforts.
Argo uses large banks of computers to mine large amounts of cryptocurrency which can then be sold for fiat money.
How it's doing
In an operational update for the month, the firm reported a margin of 34%, up from 27% in June, adding that at the end of the period it held 76 Bitcoin and Bitcoin equivalents (BTC) in accordance with its asset management strategy.
Argo also reported that during the month it had mined 165 Bitcoin and BTC compared to 180 in June, taking the total mined in the year-to-date to 1,834 BTC.
The company attributed the lower number of coins mined to a rise in mining difficulty mid-month, although it added that it is “pleased with the overall mining performance given market conditions”.
As a result of the cryptocurrency mined in the period, Argo reported revenues for July of £1.25mln compared to £.1.41mln in June.
The group has also expanded its mining capacity, reporting in June that it had spent US$474,000 to purchase 750 Bitmain Z11 mining units, which have been added to 1,000 Bitmain Z11 that it already owned.
Earlier in May, the company reported mining revenue of £1.93mln, up from £1.8mln in April, while the number of Bitcoin and Bitcoin equivalent mined fell to 252 from 319, which Argo said was largely a result of the Bitcoin halving.
For the year ended 31 December 2019, the company reported that its operating loss had been reduced by 80% to £830,000 as its revenues rose to £8.62mln from £760,000 in 2018.
The company also said it had mined around 1,330 Bitcoin (BTC) over the course of the year.
- Expanding mining capacity
- Rising price of Bitcoin and other cryptocurrencies
- Adoption of blockchain and crypto could push prices even higher
What the boss says: CEO Peter Wall
"We are delighted the month of July saw Bitcoin break through the US$10,000 barrier as this will have a material and positive impact on our mining margins going forward if the price stays above this level. The directors consider Argo to be one of the most efficient miners in the sector and well placed to capitalise on the increase in the price of Bitcoin as a result."