UK Miner Argo Reports 280% Increase in Revenue Despite Bitcoin Halving

Argo Blockchain, a publicly-listed mining firm, has published its interim half-year results for 2020. Despite a number of challenging conditions and Bitcoin’s halving in May, their results appear to be bullish. Having its headquarters in London, Argo Blockchain PLC has its shares listed on the main market of the London Stock Exchange. From January to June 2020, the revenue of the company reached £11.2 million, which is the equivalent of $14.48 million. This marks a 280% increase from the first half of the last year, when their revenue was £2.93 million ($3.79). As per the company, the increase in revenue is an indicator of a solid ramp-up in production.

During the first half of 2020, the total number of Bitcoin mined had reached 1,699 BTC, which is an increase of 545% from the same period in 2019 when it was 306 BTC. Peter Wall, the CEO at Argo, said that in the past year, the company had made strategic investments in mining gear and had aimed at running it as efficiently as possible. Their interim management report reveals exactly how much the company made an effort to build out its infrastructure. It involved installing and doing the production set-up of nearly 11,000 machines for the purpose of mining Bitcoin in the first three months of 2020.

Thanks to this expansion, the company was able to achieve solid results, even though the pricing environment was highly volatile and there was a great deal of uncertainty surrounding cryptocurrencies in the run-up to the Bitcoin halving that took place in May 2020. As reported previously, halving defines the pre-coded and periodic reduction of mining rewards for every block on the Bitcoin blockchain by 50%. This halving event in May was highly anticipated and the crypto community had been watching it closely for determining the impact it would have on miners and the price of the cryptocurrency.

The last six months have been tumultuous, to say the least, and Argo’s management said that halving had increased the pressure on inefficient miners and could have influence difficulty rates. The CEO said that they were keeping a close eye on the mining difficulty and SHA-256 hash rate. He said that they were expecting both of these to rise in the next six months because newer machines would be coming online. He noted that the mining landscape seemed to be consolidating after the halving of Bitcoin in May.

Other than Bitcoin, Argo also bought and installed 750 Antminer Bitmain machines for mining Zcash (ZEC) through the Equihash algorithm. After this acquisition, there are a total of 1,750 machines at Argo for Zcash mining, which also include some older models. The increase in machines, along with the development of machine optimization tools by its technology team, is what has helped Argo in navigating the complicated trading environment this spring. For the first half of 2020, the company’s margin had been 39% and the company claims that this figure was impaired due to weak market prices and also because of the halving.

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