Argo Blockchain PLC Ten Fold Increase in 2019 Annual Revenue (2417A)
20 January 2020 - 6:00PM
UK Regulatory
TIDMARB
RNS Number : 2417A
Argo Blockchain PLC
20 January 2020
Press Release
20 January 2020
Argo Blockchain PLC
('Argo' or 'The Company')
Trading Update
Annual revenues increase 10-fold in 2019
Argo, a leading cryptominer based in the UK (LSE: ARB), is
pleased to provide the following operational update for the fourth
quarter ended 31st December 2019 and annual revenues for last
year.
The Company expects to report a 10-fold increase in annual
revenues of approximately GBP8.5m for 2019, its maiden full year of
operations, against GBP0.76m revenues in 2018.
For Q4, Argo produced 432 Bitcoins (BTC) from its cryptomining
operations compared with 426 BTC in Q3, resulting in revenues of
GBP2.66m compared with GBP3.63m in the previous quarter. The lower
quarterly revenue is attributable to a drop in cryptocurrency
prices, increased mining difficulty, and unfavourable foreign
exchange rates towards the end of the year.
The Company achieved a mining margin of approximately 52% during
Q4 (Q3 2019: 73%), which it believes to be one of the highest
efficiency rates in the market. The lower mining margin was again
due to a 20% softening in the price of Bitcoin as well as a rise in
mining difficulty and network hash rates in Q4.
Since the year end, the Company is ahead of schedule with the
rapid expansion of its installed production capacity, which
currently stands at 13,364 machines. This includes 6,375 new
generation Bitmain Antminer T17s delivered and installed since the
beginning of this month.
The Company also remains on track to install 3,625 more T17s
machines by the end of Q1 2020, with the goal of establishing a
total production base of 17,000 machines.
The Company's installed machines currently produce 380 petahash.
Following the installation of the final 3,625 machines currently on
order, the Company expects to generate more than 650 petahash.
Peter Wall, chief executive of Argo, said: "Thanks to a
resilient performance in the last quarter, Argo delivered annual
revenues of approximately GBP8.5m in 2019, our maiden operational
year when we commenced mining at scale only in the second
half."
"Our mining operations continued to generate industry-best
mining margin in the last quarter despite a softening in market
conditions from the previous quarter. Our state-of-the-art mining
platform is performing as expected and with the expansion of our
mining network on pace, along with the recent rise with the price
of Bitcoin, Argo is well-placed for a strong year ahead."
Argo will report its audited results for 2019 in April.
This announcement contains inside information.
For further inquiries please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203 434 2334
Chief Executive
Neil Thapar +44 7876 455323
Financial Communications Adviser
------------------------------
Mirabaud
------------------------------
Corporate Broker
Peter Krens +44 203 167 7221
------------------------------
Tancredi Intelligent Communication
Media Relations
------------------------------
Salamander Davoudi +44 7957 549 906
salamander@tancredigroup.com
Emma Valgimigli
emma@tancredigroup.com +44 7727 180 873
------------------------------
About Argo:
Argo Blockchain plc is a global data centre business that
provides a purpose-built and flexible platform for mining of
leading cryptocurrencies for the enterprise-scale and institutional
sectors worldwide from operational centres in Canada. The Company
is headquartered in London, UK and its shares are listed on the
Main Market of the London Stock Exchange under the ticker: ARB.
www.argomining.co
See Argo's largest facility in Quebec:
https://youtu.be/LDWWaZ75Zbk
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END
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