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
Mike Edwards, executive chairman
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.
As of early July, Argo owns around 7,025 machines which it mostly uses to mine Bitcoin, although it has already ordered more machines to boost its mining capabilities.
• In July, Argo said it had ordered 5,000 Antminer S17 mining units which are expected to increase its crypto mining capacity by 129% to support its generation of Bitcoin
• In its second-quarter results, the company said the performance of its crypto mining activities had beaten expectations
• For June, the company expected to generate 161 Bitcoins, worth around £1.38mln and 101% higher than its mining results for May, at the time worth around US$1.68mln
• The company recently extended a multi-year agreement with GPU.one, a Canadian data centre provider, that will allow it to expand its crypto mining capacity and cut costs
What the boss says – executive chairman Mike Edwards
Commenting on the group’s mining performance for the second quarter, Argo’s executive chairman, Mike Edwards, said the better than expected performance reflected both “improving industry conditions as well as Argo's business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn”.
As a result, the group entered the third quarter with “strong momentum to deliver further growth and improving mining efficiency".
With the shares trading at around 6.8p as of 18 July, Argo has a market cap of £19.4mln.