Our new website is coming soon, give it a try now and let us have your feedback. Take me to the Beta

Email Facebook Twitter

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake Watch Now

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake
Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential

Alliance News

Argo Blockchain Significantly Upgrades Guidance As Bitcoin Price Rises

Mon, 3rd Jun 2019 11:00

LONDON (Alliance News) - Argo Blockchain PLC upgraded its second-quarter guidance on Monday due to the rising price of cryptocurrency and improved cryptomining yields, as well as new mining gear and plans for additional machines.

Shares in Argo Blockchain jumped 20% to 6.29 pence in morning trade in response to the news. It has a market capitalisation of GBP18 million.

The cryptomining services firm said it expects to generate the equivalent of 420 bitcoin worth of crypto assets in its balance sheet by the end of the second quarter of 2019. Given the May 31 price of USD8,575 per bitcoin, this would be worth around GBP2.9 million.

The GBP2.9 million figure is 57% higher than the previous estimate of GBP1.8 million and results from a sharp rise in cryptocurrency prices of around 49% as well as higher production from Argo's new and existing equipment, the company said.

Argo said trading conditions have been "significantly better than expected" since its last update on May 8, with its May results necessitating an upgrade in expectations for the second quarter.

Argo expects the have generated around GBP685,000 of crypto assets in May, again based on the USD8,575 per bitcoin price. This is 37% above prior guidance. Cash operating costs in May aligned with guidance at GBP280,000.

Delivery of new cryptomining gear also took place earlier than expected, meaning that Argo is mining on newer servers from its Quebec facilities and is a month ahead of its original schedule. More machines have been ordered at a cost of GBP2.9 million and will be in production in the second and third quarters of 2019.

"These results and forward guidance vindicate our strategy to expand rapidly as market conditions strengthen. Our timely actions, together with our ongoing investment in mining capability, means we will not only comfortably beat our original expectations but also position Argo for long term growth. We are excited about the future prospects for the sector and continue to be focused on bringing greater institutionalization and growth to the digital assets and blockchain technology ecosystem," said Argo Executive Chair Mike Edwards.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Alliance News

Back to Alliance News

Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.