Argo Blockchain PLC (ARB) is engaged in cryptocurrency mining services. It offers mining as a service (MaaS) and a cloud-based platform. The group enables users to proficiently mine Ethereum and other altcoins from their mobile device or computer. With just a transparent monthly fee and a click of a button, the group users can directly select, which coin they need to mine.
The company’s mining yields from existing hardware in operation have improved in line with strongly rising crypto prices by around 49 per cent from the previous operational update of May 08, 2019. The company is presently mining on 1,000 Z11 and 1,025 S17 Bitmain servers from its Quebec facilities, being a month ahead of the group's original schedule. The company was pleased to report that additional machines have been ordered since the last announcement on May 13, 2019, at the cost of £2.85 million which will be in production in Q2 FY19 and Q3 FY19.
In May 2019, the company expects to generate around £685 thousand of crypto assets, based on a Bitcoin price of US $8,575 as of May 31, 2019. This was around 37 per cent better than the Company's prior guidance provided in the shareholder circular of April 18, 2019. ARB's cash operating costs in May were in line with its forecast at £280 thousand.
The Company now anticipates generating the equivalent of 420 BTC of crypto assets on Argo's balance sheet by the end of Q2 FY19, which at the US $8,575 per Bitcoin, amounts to about £2.85 million. This is about £1 million or 57 per cent higher than the earlier announced estimate of £1.81 million and reflects both a significant surge in cryptocurrency prices from May 7, 2019, and higher anticipated production levels by the company's new and existing equipment.
The company’s chairman said that he is delighted with the results and progress. The company continue to implement the strategy in a cost-conscious and disciplined manner.
The better than anticipated performance reflects a continuing improvement in the market conditions and faster-than-planned implementation of a newly acquired hardware in addition to the company's strategy to create a world-class mining service for institutional and enterprise-level customers.
Argo also expects its results for the second quarter of 2019 substantially to exceed its previous guidance. The company said that the e-cryptocurrency market has a long-term growth to become a store of enduring value and a significant asset class. The technology underlying crypto mining is also moving between Proof of Stake and Proof of Work.
The company’s management believes that Argo’s refreshed strategy, business agility, strong balance sheet, and technology experience offers a strong foundation to maximize shareholder.
Share Price Performance
Daily Chart as at June-05-19, before the market closed (Source: Thomson Reuters)
On June 05, 2019, at the time of writing (before the market closed, at 9:00 am GMT), ARB shares were trading at GBX 6.365, down by 3.56 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 17.40/GBX 2.55. At the time of writing, the share was trading 63.42 per cent lower than the 52w High and 149.61 per cent higher than the 52w low.
Stock’s average traded volume for 5 days was 2,197,787.40; 30 days – 2,477,603.40 and 90 days – 2,398,552.76. The average traded volume for 5 days was down by 11.29 per cent as compared to 30 days average traded volume. The outstanding market capitalisation was around £19.34 million.