Crypto mining company Argo Blockchain PLC has revised its projections for the second quarter of 2019 as a result of the marked upturn in cryptocurrency markets over recent weeks, driving a sharp spike in its share price.
According to a report on London South East, the firm expects that its Q2 results will benefit from the positive trends across the board in cryptocurrency markets, breathing fresh optimism into the cryptocurrency mining space after years of difficulties for operators.
The U.K.-based firm, which is listed in London, saw shares rise 20% to £0.0629 (approximately $0.08) during early trading, with investors responding positively to the news of a return to growth for the mining company.
Per the projections, Argo expects to land 420 BTC on its balance sheet by the end of the quarter, which would equate to around $3.6 million—some 57% higher than initial expectations.
The guidance published by the firm also shows the expectation of generating some £685,000 (around $866,000) on the month of May alone, up 37% on its initial estimations.
Argo described recent trading conditions as “significantly better than expected,” with the firm set to upgrade its mining hardware capacity following a further £2.9 million ($3.6 million) investment in new mining resources.
Executive chair of Argo, Mike Edwards, said the figures would help the firm prepare for more sustainable long-term growth, noting, “As market conditions strengthen…we will not only comfortably beat our original expectations but also position Argo for long term growth.”
Argo became the first mining firm to join the London Stock Exchange with its listing in August 2018. Since then, the firm has reported difficult trading, including a loss of £4.1 million for the year. This led the firm to announce it was scrapping some of its services, notably around mining-as-a-service, to focus on streamlining its own mining activities.
The return of fortunes will be welcomed by Argo, as it has been by the crypto mining industry in the round, with firms finding mining activities becoming more viable as a result of the reversal in trading.
It follows from a prolonged period of bearish trading, with trends under pressure since as far back as late 2017 and early 2018.
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