(Alliance News) - Crypto mining services firm Argo Blockchain PLC said Tuesday it saw a strong mining performance in the second quarter of 2019, beating expectations.
Argo said that its mining yield from existing hardware in operation improved in line with a rising Bitcoin price by 24% since early June.
The installation of new mining gear is ongoing, with 1,000 Z11 and 1,809 S17 Bitmain servers in production at the company's facilities in Quebec, ahead of Argo's original schedule.
Argo expects to generate 161 bitcoin, or GBP1.4 million in cryptoassets in June based on a bitcoin price of USD10,817 at the end of June. This was doubled from the company's mining results in May and reflected an 81% mining margin.
As at June 30, Argo held GBP3.1 million in cryptoassets on its balance sheet, 7.7% higher than its revised estimate of GBP2.9 million, reflecting higher prices and better than expected production levels.
Looking ahead, Argo expects 2,500 additional mining machines to be delivered and in production by the end of the third quarter, and is expected to raise total mining revenue.
"Our better-than-expected mining performance reflects both improving industry conditions as well as Argo's business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn. As a result, we enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency," said Executive Chairman Mike Edwards.
Shares in Argo Blockchain down 1.0% at 7.575 pence on Tuesday.
Argo Blockchai. (ARB)