By Samuel Indyk
Investing.com – London listed cryptocurrency miner Argo Blockchain recorded its first ever full-year profit in 2020 as revenue increased by 120%.
The total number of Bitcoins mined by the company increased 85% from 1,330 in 2019 to 2,465 in 2020, taking total revenue to £19.0mln.
The company’s mining margin fell to 41% from 60% despite “challenging” market conditions, including Bitcoin halving in May 2020 and the coronavirus pandemic.
This saw Argo Blockchain (LON:ARB) deliver a net profit of £1.7mln versus a net loss of £0.7mln the previous year.
“Argo crossed a major inflexion point in 2020 in its history by achieving full-year profitability on a 120% increase in revenue, our second consecutive year of triple-digit top-line growth,” said Argo CEO Peter Wall.
Outlook
The company also announced a strong start to trading in the first quarter, driven, in part, by a rise in Bitcoin prices.
Bitcoin has rallied almost 90% year to date amid increased institutional demand and as more corporations venture into digital assets. This year, Tesla (NASDAQ:TSLA) announced it had bought Bitcoin to hold on its balance sheet, sales of which helped the company report a record profit in the first quarter.
Argo said they are well placed to benefit from robust trading conditions amid buoyant demand for cryptocurrency.
“With a proven management team, world-class mining infrastructure, and strong tailwinds from the industry's recent growth, the Board looks forward to the future with great confidence,” Wall added.
At 10:25BST, shares in Argo Blockchain were trading higher by 1.9% at 190.7 pence per share.