The results are the first set of figures since Argo decided to refocus its business from subscription-based mining to generating crypto for its own ends
PLC () shares climbed on Tuesday after it swung to its first profit since listing in its interim results.
For the six months ended 30 June, the cryptocurrency miner, which floated on the main market in August last year, reported a pre-tax profit £946,857, swinging from a £1.1mln loss in the prior year, as revenues jumped to £2.9mln from £764,562 at the end of 2018.
READ: Argo Blockchain ends partnership discussion with Hive Blockchain Technologies
The results are the first set of figures since Argo switched its strategy from a subscription-based crypto mining services provider to mining crypto for its own ends earlier this year after a downturn in crypto prices.
Argo said that as a result of the new strategy it had reduced its annual mining cost base by 35%, with executive chairman Mike Edwards saying the results validates the firm’s “decisive action” to refocus the business.
The company also noted its decision to focus on Bitcoin mining rather than other forms of crypto, with prices of the digital currency having risen 174% in 2019 to around US$10,200.
Looking ahead, Edwards said current trading was “progressing well” with the full-year results expected to reflect a “full six-month contribution” of its existing mining platform as well as additional capacity taking its total mining capacity to 12,000 machines by the end of the year.
The chairman added that the company’s “aggressive investment” in scaling up mining capacity provided “strong momentum” towards its goal of becoming the world’s largest publicly-listed crypto miner next year.
In mid-morning trading, the shares were 4.5% higher at 10.4p, however, this is still around 35% below its initial public offering (IPO) price of 16p.
–Updates share price–