The cryptocurrency miner also says its plans to expand its mining capacity are currently ahead of schedule
() shares bounced on Monday as it reported a ten-fold increase in revenues for 2019.
The cryptocurrency mining firm said in a trading update that it expects revenues for the year ended 31 December to be £.8.5mln, up from £760,000 in 2018.
For its fourth quarter, Argo produced 432 Bitcoins from its crypto mining operation compared to 426 in the third quarter, however, revenues fell to £2.66mln from £3.63mln over the same period due to a decline in cryptocurrency prices and what the firm said was “increased mining difficulty” and unfavourable foreign exchange rates.
Softer Bitcoin prices were also blamed for a decline in Argo’s mining margin to 52% in the fourth quarter from 73% in the third, although the company said it believed this was still “one of the highest efficiency rates in the market”.
Post-year-end, Argo says it is expanding its mining capacity ahead of schedule, with 6,375 new mining machines having been installed since the start of January, taking its total capacity to 13,364.
The firm is also on track to install another 3,625 mining machines by the end of the first quarter, with the ultimate goal of expanding its capacity to 17,000.
“Our state-of-the-art mining platform is performing as expected and with the expansion of our mining network on pace, along with the recent rise with the price of Bitcoin, Argo is well-placed for a strong year ahead”, said Argo chief executive Peter Wall.
The shares were 2.5% higher at 7.2p in early deals.
–Adds share price–