U.K.-listed blockchain mining company Argo Blockchain is to increase its capacity further than previously thought, following an increased order of 10,000 mining machines.
The cryptocurrency mining company, the first of its kind to be listed on the London Stock Exchange, said it would now purchase 10,000 Antminer T17s, rather than the 500 AntMiner S17s originally planned, Proactive Investors reported.
As well as delivering a significant increase in crypto mining capacity, the decision will also ensure Argo pays a lower rate for its mining activities, down from $13.09 million to $9.51 million.
The units will in part be funded by an initial $6.5 million deposit which had been paid towards the original order, but which will now be applied towards the revised units, and could help increase output significantly at the mining firm.
Executive chairman of Argo, Mike Edwards, said the move was a reflection of the strong financial performance of Argo, and part of efforts to ensure the firm was well prepared for future market conditions.
Our strong balance sheet and cash flow means we can continue to invest to take advantage of favourable industry conditions and position Argo for longer term growth and value creation.
The news shows that some companies are still able to profit from cryptocurrency mining, and are still in an expansion phase of their lifecycle. This comes against the backdrop of a squeeze on smaller miners, unable to keep up with the demands of more resource-intensive mining and diminishing returns, such as those arising from the forthcoming “halvening,” where the BTC mining reward is set to half early in 2020.
The latest order means Argo is still waiting on delivery of a total of 10,500 mining units, which will take the firm’s total capacity to 17,000 mining rigs once delivered and installed. This is expected to represent an increase in capacity of 240%.
It remains to be seen whether the move will boost Argo’s mining profitability, with widespread expectations that there could be further challenges for the firm ahead.
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