The jump in income for the Bitcoin miner came as it said it was planning to double its mining capacity by the end of the year with 6,000 new machines
PLC () has reported a 75% increase in revenues for its third quarter despite what it says is a “softening” of Bitcoin prices.
Takings for the cryptocurrency miner rose to £3.6mln in the three months to 30 September, up 75% on the second quarter, with a mining margin of 73%, which the company believed was one of the “highest efficiency rates” on the market.
READ: Argo completes installation of 1,000 crypto mining machines
Argo attributed its increased returns despite the softer pricing of Bitcoin to a number of factors including competitive prices for its electricity and a low operating cost base, as well as a policy adopted in the quarter to convert its mined Bitcoin for fiat currency on a regular basis to avoid exposure to Bitcoin prices, which can be prone to large swings in value.
The company also said it was planning to have another 6,000 mining machines installed before the end of the year, doubling its current number.
“Our investment in the most advanced mining hardware on the market continues to provide us with a competitive edge even as mining conditions become more challenging”, said Mike Edwards, Argo’s executive chairman.
He added that the results for the period would help the group retain a “robust balance sheet” and that the company was now focused on executive its growth strategy to become the world’s largest listed crypto miner by next year.
Broker forecasts “significant upside”
In a note on Tuesday, analysts at Mirabaud forecast “significant upside” for Argo going, predicting that the implied number of Bitcoins mined in the final quarter of its 2019 financial year would be 608, a 41% increase on the 430 mined in the third quarter.
Analysts also said that when the 6,000 mining machines currently on order were put into production, the company’s monthly income was expected to exceed £1.6mln.
In late-afternoon trading on Tuesday, Argo’s shares were 1.2% lower at 8.3p.
–Adds broker estimates and updates share price–