London-listed Argo Blockchain (GBX:ARB ) told investors that revenues increased 11-fold after it reported a 306% increase in its cryptocurrency mining capacity for the 12 month period to 31 December 2019.
The company outlined in its full-year results this morning that revenues had surged from £0.76 million in 2018 to £8.62 million for the year after mining around 1,330 Bitcoin for the period.
Total administrative expenses for the year increased marginally to £3.89m (2018: £3.73m), which included management and staff termination fees of £0.24m, foreign exchange losses of £0.4m and losses on crypto asset fair value movements of £0.33m.
EBITDA for the year was £1.39m against Argo’s £3.66m EBITDA loss for FY18 with the company recording a net loss of £0.69m attributable to shareholders, down from a loss of £4.12m in 2018.
Shares in Argo Blockchain started the month trading at 3.1p to open at 5.75p following today’s results.
In response to ‘challenging industry conditions’ during the first quarter of 2019, the group transitioned from a consumer-facing 'mining-as-a-service' to a proprietary mining model.
Total mining hardware in production has now increased by 10,000 to 17,000 machines in Q1 2020 and the company remains on track to reach around 18,000 or 730 Petahash (PH) capacity shortly.
The miner therefore says it is now “on track to deliver strong growth” in the first half of 2020 compared to the same period last year.
Peter Wall, CEO of Argo noted the success of the transition and said it had allowed the group “to emerge as a significant cryptocurrency miner listed on a leading international exchange.”
“We entered 2020 with considerable business momentum and an efficient mining platform which puts us in a favourable competitive position to navigate the evolving and dynamic cryptocurrency ecosystem,” added Wall.
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