Cryptocurrency mining firm Argo Blockchain plc has posted better-than-expected results for Q2 2019, as conditions for mining firms continue to show signs of improvement.
The London Stock Exchange-listed firm, which provides mining services on an enterprise scale, said it had seen an improvement in mining yields, as well as benefiting from the effects of increasing its capacity through onboarding more mining units.
Since the last update in June, the company said it has benefited from the growth in crypto markets, resulting in up to a 24% gain in mining revenues in some cases. The company said its production facilities in Quebec were now operating ahead of schedule, with 1,809 S17 mining units on stream, alongside 1,000 Z11 units.
The firm went on to confirm as many as 2,500 additional mining rigs are expected to be in production by the end of next quarter, with the firm looking to capitalize on the current optimistic trading in key crypto markets.
Argo executive chairman Mike Edwards said the results were a combination of sound business strategy and better trading conditions for crypto miners in recent months.
“Our better-than-expected mining performance reflects both improving industry conditions as well as Argo’s business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn. As a result, we enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency,” Edwards said in a statement.
The crypto mining sector has experienced difficult trading over the last couple of years, thanks in part to the collapse in SegWitCoin (BTC) prices. Coupled with rising hardware and energy costs, several high profile mining firms have been forced into bankruptcy, or into making swinging cuts to staff and resourcing in order to stay afloat.
As one of the world’s first public companies trading in the crypto mining sector, Argo Blockchain can be seen as something of a bellwether for the wider industry. While the effects of the decline of BTC are still being felt throughout the sector, the Q2 results mark some rare good news for the industry as it strives to return to viability.
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