BTC Miner Argo Reports a Surge of 332% in H1 2021 Net Income Due to Increase in its Production
The company reported a mining margin of 81%, up from 39% in H1 2020, which further jumped to 83% in July. In late June and July, the miner actually mined more BTC with the same hash power due to a substantial decrease in the global hash rate that led to big changes in mining difficulty after China’s crackdown on crypto mining.
Bitcoin miner Argo Blockchain reported its financial results for the first six months to June 30, 2021, noting an increase of 180% in its revenue to £31.1 million (nearly $43.2 million), reflecting an increase in production and Bitcoin prices.
In the first half of 2020, the company earned revenue of £11.1 million or $15.4 million.
The UK-based miner reported a surge of 332% in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to £16 million (about $22.2 mln), despite a £6.2 mln downward revaluation of digital assets and a £1.6 mln share-based payment charge.
The company also reported a mining margin of 81%, up from 39% in H1 2020, while pre-tax profit grew more than 21x during the same period to £10.7 mln. Peter Wall, CEO & interim chairman at Argo Blockchain, said,
“We have capitalised on a change in market conditions in the first half of 2021 to deliver strong growth in both revenues & profits, demonstrating that our smart growth strategy is delivering value to shareholders.”
Argo Blockchain mined a total of 883 BTC compared to 1,669 in 2020; this decline was due to the halving in May 2020, which reduced Bitcoin block rewards from 12.5 BTC to 6.25 BTC.
In late June and July, the miner mined more BTC with the same hash power due to a substantial decrease in the global hash rate that led to significant changes in mining difficulty.
Last week, it reported mining 225 BTC at a mining margin of 83%, bringing its total BTC mined year to date at 1,108 BTC. Wall said at the time,
“We are also pleased to have broken ground at the Texas facility, and are excited to continue to utilise renewable power and to work with the local community in Texas to enact positive change.”
As of June 30, the company holds 1,268 BTC, while it held a mere 127 BTC last year. At the end of July 2021, Argo had 1,496 BTC.
Argo also increased its mining capacity from 685 PH at the end of 2020 to 1,075 PH as of 30 June 2021.
Already listed on the London Stock Exchange under the ticker ARB, trading at $126.70, down from $284 ATH in February, last month Argo also filed for an initial public offering (IPO) in the US market under the ARBK ticker.
Argo, powered by clean energy, expects the proposed offering to start in the Q3 of this year after the SEC has completed its review process and approval.