In a note, the broker said the Bitcoin mining firm’s results for 2020 had also come in “slightly ahead” of their expectations
’s () expansion of its Bitcoin mining operation with a new facility in Texas will enable it to differentiate itself in the market through “access to very low cost, renewable power”, according to analysts at its house broker finnCap.
In a note on Thursday, the broker said the Bitcoin mining firm’s results for 2020 had come in “slightly ahead” of their expectations, adding that based on a Bitcoin price of US$60,000 they expected the firm to generate £93mln of revenue in 2022 as well as invest around £180mln into its new Texas facility and new mining machines over the next two years.
READ: Argo Blockchain swings into profit as it crosses major inflexion point in 2020
finnCap added that Argo’s focus on renewable power will become “increasingly important as global governments and investors scrutinise Bitcoin mining powered by non-renewables”, adding that the company will also benefit from its increased scale by “achieving attractive pricing on new machines”.
“We look forward to Argo updating on the build progress of its new facility, announcing new machine orders, and continuing to demonstrate operational efficiency at its monthly updates”, finnCap said, while also reiterating their 240p price target on the firm.
Shares in Argo were up 4.2% at 195p in late-morning trading.