Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, FRA:0XP) has reported a sharp jump in the number of Bitcoin acquired in July amid a decline in the mining difficulty on the digital currency’s blockchain network.
In a monthly update, the crypto miner reported that it had mined 225 Bitcoin or equivalent (BTC) in July, up from 167 BTC in June, taking the total mined in the year-to-date to 1,108 BTC.
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Revenue for the month, meanwhile, amounted to £5.6mln compared to £4.36mln in June, while the group’s average monthly mining margin increased to 83% from 78%.
At the end of July, Argo said it owned 1,496 BTC.
"I'm delighted that we have been able to capitalise on the reduction in global hash rate and mining difficulty this month to deliver these results at an impressive margin. We are also pleased to have broken ground at the Texas facility, and are excited about the opportunities that this development offers in allowing us to exercise greater control over our mining operations, to continue to utilise renewable power and to work with the local community in Texas to enact positive change," Argo chief executive Peter Wall said in a statement.
In a note on Tuesday, analysts at house broker finnCap, which rate Argo with a target price of 220p, said they expected the firm will "continue to benefit from the disruption to global mining" following a crackdown on the industry in China, adding that mining difficulty, the cost of mining machines and the Bitcoin prices will be the key variables for the firm's performance going forward.
Argo's shares were 0.4% lower at 134.5p in late afternoon trading in London.
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