The cryptoasset miner said a strong rise in Bitcoin prices had boosted yields from its hardware, while 2,500 new machines were expected to be in operation by the third quarter
PLC () shares surged higher on Tuesday after the performance of its crypto mining activities beat expectations for the second quarter.
In an update for June, the group said mining yields from its existing hardware had improved in line with the “strongly rising” Bitcoin price, and as a result it now expected to generate 161 Bitcoins, worth around £1.38mln and 101% higher than its mining results for May.
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The company also said that, as of the end of June, it held around £3.07mln in cryptoassets, 7.7% higher than a previously revised estimate of £2.85mln, as a result of a “significant increase” in the prices of the assets as well as higher than anticipated production levels.
Meanwhile, Argo said the installation of new mining gear at its facility in Quebec was continuing ahead of schedule, with another 2,500 mining machines to be delivered and in production by the end of the third quarter which was expected to increase mining revenues “considerably”.
Mike Edwards, executive chairman of Argo, said the better-than-expected performance reflected not only “improving industry conditions” but also the company’s strategy which had enabled it to “rapidly ramp up operations” and take advantage of the upswing in crypto prices.
“We enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency”, Edwards added.
In early trading on Tuesday, Argo’s shares were up 4.6% at 8p.