UK Bitcoin Mining Firm’s Revenue Jumps 75% despite Bearish Q3

Subscription-based bitcoin mining firm Argo Blockchain has registered a profitable third quarter even though the asset it deals in witnessed a sharp drop in value.
The UK-based company, whose stocks are listed on the London Stock Exchange (LSE), confirmed its revenues rose to £3.6 million (~$4.42 million) in the three months ending on September 30. That brought its quarter-on-quarter gains up by 75 percent, with a mining margin of 73 percent.
Mike Edwards, the executive chairman of Argo, attributed their increased returns to a string of factors, including competitive electricity costs and a lower operating cost base. Edwards stated that Argo would install another 6,000 mining machines before the end of the year, a move that could propel their production to a new high.
“Our investment in the most advanced mining hardware on the market continues to provide us with a competitive edge even as mining conditions become more challenging,” said Edwards, adding that “a robust balance sheet” would make Argo the world’s largest listed cryptocurrency miner.
Bitcoin Suffers
Argo’s gains came on the backdrop of dwindling bitcoin prices throughout the third quarter of 2019. The period saw the benchmark cryptocurrency plunging by more than 25 percent, according to data gathered by Skew. Analysts attributed the losses to bitcoin’s overbought status after a 150 percent price rally during the first half of 2019. Many even stated that a gloomy macroeconomic outlook led investors away from risky assets, causing bitcoin to crash.
Bitcoin has slipped by more than 45 percent from its year-to-date high | Image credits: TradingView.com
Edwards revealed that Argo periodically converted a portion of its mined bitcoin to fiat to fund its operational costs. The leftover funds made into the company’s balance sheets, which showed why it registered a 75 percent revenue against a bearish bitcoin.
Hashrate High
Argo’s strategy further showed that miners did not turn off their machines when faced with lower bitcoin prices. Even after dropping by more than 45 percent from its year-to-date high, the cryptocurrency continues to be profitable for the network participants. That is also visible in the bitcoin’s rising hash rate.
Bitcoin hash rate chart | Image credits: Blockchain.info
As of September 26, the amount of computing power involved in validating and adding transactions on the Bitcoin blockchain had hit above 108.48 trillion hash per second. Against the dwindling prices, the bitcoin network remained attractive to miners. Argo’s decision to expand its mining rigs further came on expectations of a bitcoin price recovery, especially ahead of the next year’s halvening event, which would slash the cryptocurrency’s supply rate by half.
The post UK Bitcoin Mining Firm’s Revenue Jumps 75% despite Bearish Q3 appeared first on NewsBTC.

Bitcoin Store Of Value Sentiment Stronger Than Ever as Economic Collapse Looms
Friday October 18, 2019

The state of the world economy just over a decade ago was not a pretty picture. A solution was needed and one was offered in the form of a decentralized peer-to-peer digital monetary system....

Bitcoin Price May Buck Bull Trend & Fall by 75% to $2,000, Peter Schiff Warns
Saturday October 19, 2019

It isn’t a secret that Bitcoin (BTC) hasn’t been doing too well as of late. While the cryptocurrency is up 100% on the year, it is down some 45% from the year-to-date high of...

The post Bitcoin Price May Buck Bull Trend & Fall by 75% to $2,000, Peter Schiff Warns appeared first on 12bitplay - Bitcoin Play.

The post Bitcoin Store Of Value Sentiment Stronger Than Ever as Economic Collapse Looms appeared first on 12bitplay - Bitcoin Play.

UK Forex Giant Launches New Bitcoin Service as Brexit Fears Grow
Monday October 14, 2019

UK-based FXCM Group has introduced a new bitcoin trading service right around the time when investors weigh the possibility of a hard Brexit. The forex brokerage giant announced in a press release published on...

The post UK Forex Giant Launches New Bitcoin Service as Brexit Fears Grow appeared first on 12bitplay - Bitcoin Play.

You may also like...