Argo Blockchain Records Massive Revenue Surge In First Half

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Argo Blockchain (Courtesy: Twitter)
Argo Blockchain (Courtesy: Twitter)

Argo Blockchain Plc, the leading UK-based cryptominer (LSE: ARB), is pleased to announce its results for the six months to 30 June 2020, the firm said in an official media release.

Financial highlights

●     Total number of Bitcoins mined during H1 2020 rose from 306 to 1,669, a 545% increase from H1 2019

●     Revenues surge 280% to £11.12m reflecting major ramp-up in production (H1 2019: £2.93m)

●     Cash at bank amounted to £1.3m at 30 June 2020, up from £0.16m at 31 December 2019

●     EBITDA* increased by 96% to £3.23m (H1 2019: £1.65m)

●     Mining margin of 39% (H1 2019: 76%) despite the halving of the Bitcoin mining reward and amid challenging conditions

●     Pre-tax profit of £0.52m (H1 2019: £0.95m)

*Earnings before interest, tax, depreciation and amortisation.

Operating highlights

●     Appointed new leadership team in January 2020 under executive chairman Ian MacLeod and chief executive Peter Wall to drive Argo’s next phase of growth

●     Expanded production base by 260% to 18,000 machines (H1 2019: 5,000 machines) making Argo one of the world’s largest publicly listed miners with 730 petahash capacity

●     Enhanced power consumption efficiencies with proprietary performance optimisation tools developed by Argo’s in-house technology team

Commenting on the results, Peter Wall, chief executive, said: “We delivered strong growth while successfully navigating through challenging trading conditions, including the halving of Bitcoin rewards, during the first half of the year. With one of the world’s largest and most efficient mining platforms owned by a publicly listed company, the board considers Argo is well positioned to benefit from improving market conditions and rising cryptocurrency prices.”

Directorate Change

Separately, the Group today announces that James Savage is stepping down as finance director to pursue other business interests outside the crypto mining industry. The Group thanks James for his significant contributions and wishes him well. Alex Appleton will be joining the company as Interim Finance Director and will be working closely with James over the next few months to transition the portfolio and responsibilities. Alex (CA) is a member of the Institute of Chartered Accountants of Scotland and brings 19 years of experience in auditing and corporate. He brings 8 years of board level experience to the role as both a Finance Director and as Chief Operations Officer. Alex has previously held roles within large multinational organisations and worked within the cryptocurrency sector. He specialises in financial planning, business analysis and financial modelling.