What significant factors led Argo Blockchain to deliver mining revenue growth during April 2021?

Summary

  • ARB had shown revenue growth of around 120% from £8.6 million in FY19 to £0 million during FY20.
  • The Company has 936 Bitcoin or Bitcoin Equivalent (“BTC”) at the end of April 2021.
  • The average monthly mining margin remained around 85% for April 2021.

Argo Blockchain PLC (LON: ARB) is the LSE listed technology stock. ARB’s shares have generated a return of around 3,141.42% in the last 12 months.

 Company Overview

Argo Blockchain PLC is a Cryptocurrency Mining Company, which is listed on the Main Market of the London Stock Exchange. It is the global leader with one of the most prominent operations primarily driven by clean energy.

A brief about Cryptocurrency Industry

Cryptocurrency is a digital form of cash. It is a currency associated with the internet, which uses decentralized technology to make secure payments. It is a form of payment that can be exchanged online to make purchases of goods and services. Cryptocurrency is purely digital money, and there are no physical coins, bills, or any form of physical money linked to it.

Operational Update (as of 04 May 2021)

The Company had mined approximately 163 Bitcoin or Bitcoin Equivalent (“BTC’’) in April 2021, while it had mined 165 BTC in March 2021. Moreover, Argo had reported growth in mining revenue to £6.70 million for April 2021 in comparison to £6.57 million made during March 2021. Moreover, the average monthly mining margin remained around 85% for April 2021, while it was 84% during March 2021. ARB held around 936 BTC at the end of April 2021.

FY20 Financial & Operational Highlights (as of 29 April 2021)

The Company had demonstrated stellar revenue growth of 120% from £8.6 million in FY19 to £19.0 million during FY20. Moreover, ARB had also shown an 85% growth in annual production of the total number of bitcoins mined to 2,465 during FY20. On the profitability front, ARB had managed to deliver a net profit of £1.7 million during FY20. ARB had managed to accelerate the operational progress as it had expanded the mining capacity from 210 petahash to 645 petahash on SHA-256 and 180 Megasols to 280 Megasols on Equihash during FY20.

Share Price Performance Analysis of Argo Blockchain PLC

 

(Source: Refinitiv, Thomson Reuters)

ARB shares were trading at GBX 179.69 and were down by close to 7.37% as of 04 May 2021 at 01:42 PM GMT. ARB’s 52-week Low and High were GBX 3.40 and GBX 340.53, respectively. Argo Blockchain PLC had a market capitalization of around £740.62 million.

Business Outlook

The Company had witnessed a fourth consecutive month of delivering record mining revenues and profits. The positive momentum was built by favorable bitcoin prices and stable mining difficulty. Moreover, the Company had delivered a second year of achieving triple-digit revenue growth during FY20. Furthermore, ARB would continue to invest in new mining capacity and new ventures. The Company is well-positioned to capture market opportunities related to the increasing demand for cryptocurrency. Meanwhile, ARB had collaborated with Navier to develop the Texas facility, which would significantly expand the mining infrastructure. Overall, the Company is well placed to accelerate its growth trajectory driven by the robust balance sheet.


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