Argo Q2 Revenue Exceeds Expectations as Bitcoin Mining Profits Increase Due to BTC Price Boost
The recent bitcoin bull run has been anticipated for months by the crypto community because it brought an end to the bear run that had endured for months and had negatively impacted the market beyond just the price of cryptos. As soon as the Bitcoin price began to rise, there was a ripple effect across the industry as other tokens also saw their value increase and bitcoin received more attention in the mainstream financial world even as institutional firms are finding their way into space.
Apparently, these benefits extended to the mining sector as Argo, a blockchain mining operator based in the United Kingdom stated in a new report released on July 2, 2019, that they surpassed their expectations for the second quarter of 2019 and this is partly as a result of the upturn in price.
“The Company now expects to generate 161 BTC, or GBP1.38m of crypto assets, in June based on a BTC price of $10,817.16 USD as of 30 June 2019,”
the report confirmed.
“This is an increase of approximately 101% from the Company's May mining results and represents a mining margin of roughly 81%. The Company considers that this demonstrates that the Company is one of the most efficient miners in the market.”
The report also stated that revenue should continue to improve over previous estimates. This also lends credence to a previous report stated that there is more demand for mining equipment than there is supply and this also goes for mining producers who are struggling to fill orders in time, even as a sudden spike in demand for their products occurred in the last few months. According to the previous reports, a lot of these requests for mining equipment come from larger firms who wish to buy in bulk and this makes it much harder to fill orders for smaller requests. Mining has maintained its profitability over the last few years and with this new increase in bitcoin price, it shows no signs of slowing down.
On July 1, 2019, Northern Bitcoin, a firm in Germany, confirmed the purchase of 5,000 ESIC miners as part of their plans for extension. All things being equal, the industry shows signs of continuing to thrive into the near future and the with the institutional forms coming in, the upcoming Facebook token that is bound to give more attention to the crypto industry and other factors, mining equipment producers will have many orders to fill.
“Mining yields from existing hardware in operation have improved in line with a strongly rising Bitcoin (BTC) price, which has increased by approximately 24% since the last operational update on 3 June 2019,”
the report added.
“As a result, we enter the third quarter with strong momentum to deliver further growth and improving mining efficiency,”
CEO Mike Edwards.
This also speaks to the expansion of the industry since its inception in the last few years and is also indicative of just how much demand will occur in the next few years considering its high growth rate.