February Update, mining income up 56 per cent

RNS Number : 9177E

Argo Blockchain PLC

04 March 2020

 

Press Release

4th March 2020

Argo Blockchain PLC

('Argo' or 'The Company')

Monthly Update

February mining income up 56%

Mining base of 17,000 machines completed ahead of schedule

New £1.17m capital investment 

Argo Blockchain plc, the leading UK-based cryptocurrency miner (LSE:ARB), is pleased to provide the following update for February 2020.

The Company mined 337.5 Bitcoin or Bitcoin Equivalent (BTC) during the month of February, a 37% increase on the number of Bitcoin Equivalent mined in January (247). 

Based on daily foreign exchange rates and cryptocurrency prices during the month, the Company generated mining revenue of £2.54 million, an increase of 56% on its monthly mining income in January (£1.63 million).  Argo generated this income at a mining margin of 50% and the Company continues to consider its operations to be among the most efficient in the market.  Mining conditions in February and algorithmic difficulty were broadly unchanged from the previous month. 

The Company is also pleased to announce that it has met its target of having 17,000 machines in production by the end of Q1 2020 ahead of schedule. The Company has now installed 10,000 Bitmain Antminer T17s since the start of the year, amounting to a total investment of £7.44 million (US$9.51 million). This brings Argo's installed and operational mining capacity to 665 petahash (PH).

The Company has also ordered 1,000 Bitmain Antminer S17+ machines, at a total cost of £1.17 million (US$1.5 million). The investment is being entirely funded from internally generated cash flow. The new investment is part of the Company's maintenance capex designed to retain Argo's technology lead and prepare for the halving of Bitcoin mining reward in May, which is anticipated to strengthen market prices later this year.

The new hardware is expected to be delivered and installed by the end of April and will bring Argo's total BTC mining capacity to around 730 PH, an increase of approximately 10%.  

The Company's mining operations, which are in North America, have not been impacted by coronavirus.  

Peter Wall, chief executive of Argo, said: "We are immensely proud to have successfully executed the roll-out of 17,000 machines, which is part of the Company's strategy to become of one of the world's largest and most efficient cryptomining infrastructures owned and operated by a publicly-listed company. This investment was completed ahead of schedule and on budget and puts Argo in a strong competitive position to benefit from the industry's growth.

"We are also making a further small investment in new hardware to remain at the industry's forefront. We remain optimistic about the Company's prospects for 2020 and look to the future with confidence."

This announcement contains inside information.

For further information please contact:

Argo Blockchain
Peter Wall Chief Executive Neil Thapar Financial Communications Adviser	via Tancredi [phone] [phone]
Mirabaud
Corporate Broker Peter Krens	[phone]
Tancredi Communication Media Relations
Salamander Davoudi [e-mail]  Emma Valgimigli [e-mail]	[phone] [phone]

About Argo:

Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB.

argoblockchain.com

See Argo's largest facility in Quebec:

https://youtu.be/LDWWaZ75Zbk

 

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