Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, FRA:0XP) (LSE:ARB) reported a profit surge in its first half as a boom in Bitcoin prices and an expansion of its crypto mining operations lifted revenues.
In its results for the six months to June 30, the crypto miner reported a pre-tax profit of £10.7mln, up from £0.5mln in the prior year, while revenues surged 180% to £31.1mln, reflecting the company’s increase in production as well as the rise in Bitcoin prices over the period.
READ: Argo Blockchain rakes in Bitcoin amid fall in mining difficulty
The firm also reported a mining margin of 81%, a sharp rise from 39% the year before, while the total number of Bitcoin and Bitcoin Equivalent (BTC) mined in the period fell to 883 from 1,669 last year, a change which was attributed mostly to a Bitcoin halving in May, which made the crypto more difficult to mine.
Argo’s BTC holdings also jumped to 1,268 at the end of the period from 127 BTC the year before.
Looking ahead, the company said its strategic priority for 2021 continues to be focused on “smart growth” and the expansion of its mining capacity as well as increasing returns from its installed base of hardware.
"We have capitalised 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," Argo chief executive Peter Wall said in a statement.
In a note on Monday, house broker finnCap increased their target price for Argo to 240p from 220p on the back fo the results, adding that they expected the company to hold all of the BTC it will mine in the second half of the year.
Despite the strong results, the shares appeared to be suffering from some profit-taking, falling 6.9% to 122p in mid-morning trading.
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