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Argo Blockchain (ARB) Shares Rallied 11.5% on Latest Update Despite Lower Revenues

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Updated: 7 Jan 2022

Key points:

  • Argo Blockchain shares rallied 11.5% after releasing its December operations update.
  • The Bitcoin mining company mined 214 BTC in December, beating November’s 185 BTC, yet it generated lower revenues.
  • The falling Bitcoin prices contributed to its lower revenues as the leading crypto lost over $10,000 during December.

The Argo Blockchain PLC (LON: ARB) share price edged 11.5% higher after releasing its December operations update.

The Bitcoin mining company mined 214 Bitcoin or its equivalent (BTC) in December compared to 185 BTC in November to bring its 2021 total mining output to 2,045 BTC.

The cryptocurrency mining company generated £7.82 mln [$10.55 mln*] in revenues during December compared to the £8.29 mln [$11.20 mln*] generated in November 2021.

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Also Read: Argo Blockchain Share Price Surged 9.31% After Mining 185 Bitcoin in November.

Argo generated lower revenues in December despite mining a higher number of Bitcoin because of the lower Bitcoin prices after the leading cryptocurrency fell from an initial price of $57,179 at the start of December to $46,140 at the end of December.

The mining company’s operating margins fell to 83% in December from the 86% recorded in November, primarily due to the lower Bitcoin prices.

The company revealed that it was holding 2,595 Bitcoin or its equivalent at the end of December, which makes me wonder if they sold any of the Bitcoin mined throughout the year.

Argo further told investors that its 200MW flagship cryptocurrency mining facility, Helios in Dickens County, Texas, was progressing according to schedule. The company has completed the main structure, including the external facade and the roof.

The project is expected to be completed in H1 2022 and is currently in the second stage, where the essential infrastructure is being built.

Peter Wall, Argo Blockchain’s CEO and interim Chairman said: “2021 has been a transformational year for both Argo and the cryptocurrency sector. We began development on our mining facility in Texas, and we took Argo to NASDAQ. Our efforts allowed us to expand our global presence, and we look forward to the year ahead and the opening of our mining facility in Dickens County, Texas”.

Argo shares initially fell before reversing course and rallying 10.9% from their opening price at writing.

Investors interested in owning Argo Blockchain shares may find its current prices quite attractive.

*This is not investment advice. Always do your due diligence before making investment decisions.

Argo Blockchain share price.

IG chart of Argo Blockchain share price 07-01-2022
Source: IG

Argo Blockchain shares rallied 11.53% to trade at 87p, rising from its opening price of 78p.

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