With bitcoin’s rise, the London-listed Argo Blockchain, which is very involved in large-scale crypto mining, was looking for a profit in 2020, as well as strong revenue development. Argo’s net profit in 2020 was £1.7 million, up from £0.7 million the previous year, thanks to a 120 percent rise in sales to £19 million.
According to reports, the majority of the profit was made in the first quarter of 2021. The increase in Bitcoin’s price, as well as a much more manageable mining difficulty, were driving factors. In 2017, the company was established, and in 2018, it went public on the London Stock Exchange.
Full year profitability
Argo’s CEO, Peter Wall, said: “Argo crossed a major inflection point in 2020 in its history by achieving full-year profitability on a 120 percent increase in revenue, our second consecutive year of triple-digit top-line growth.”
The company’s stock price has been skyrocketing in recent months. It has risen from 5 pence at the beginning of October to £2.84 in February.
This is happening at the same time as bitcoin’s uncertainty. It has now surpassed the all-time high set earlier this month. It has crossed $64000, an increase of $10000 since the beginning of October. It was trading at $54456.473 at the time of writing.
As Argos increased from 1330 in 2019 to 2465 in 2020, the total number of bitcoins obtained from mining increased. The company’s annual production has increased by 85 percent. Despite the difficult market conditions, bitcoin will be halved in May 2020 as a result of Covid.
The party had 764 bitcoins and its equivalents as of March 31. It is priced at £32.6 million, which is based on the price of bitcoin at the time. It has also earned £49, which is a significant amount of new capital for mining rig investments. Pluto Digital Assets has several large equity investments in blockchain with fintech ventures.
Strong trading conditions
It anticipates a well-timed boost from the current strong trading conditions and strong demand. It intends to keep using the new mining power.
Wall added: “With a proven management team, world-class mining infrastructure, and strong tailwinds from the industry’s recent growth, the board looks forward to the future with great confidence.”
Argo announced plans for a new cryptocurrency mining facility in West Texas last week, with an emphasis on renewable energy. This comes amid increased scrutiny of bitcoin and other cryptos, as well as their environmental effects.