- Argo Blockchain shares surged 10.1% on the August Bitcoin mining update.
- The crypto miner also signed a hosting agreement with an undisclosed firm.
- So, should you buy Argo Blockchain shares? Read on to find out.
The Argo Blockchain PLC (LON: ARB) share price surged 10.14% after signing an agreement with an undisclosed company to host and operate their Bitcoin mining machines at its Helios Facility in Dickens County, Texas.
Investors also cheered the Bitcoin mining company’s August operations update, which saw the company mine 235 Bitcoin or Bitcoin equivalents (BTC), marking an improvement to the 219 BTC mined in July.
Also read: The Best Way To Buy Ethereum – How To And Why.
Argo Blockchain noted that it was still installing the new Bitmain S19J Pro machines at Helios and had attained a combined hashrate capacity of 2.5 EH/s at the end of August. Investors cheered this development, increasing the company’s mining capacity even as the Bitcoin mining difficulty increased.
The miner’s estimated revenues from the Bitcoin and Equivalents mined in August was £4.39 million ($5.23 million) compared to July’s £3.89 million ($4.73 million). Luckily for investors, Argo Blockchain rarely sells its Bitcoin and BTC holdings. Hence, the company could realise higher prices for its Bitcoin holdings if prices rally higher.
Argo Blockchain held 1,098 Bitcoin at the end of August, of which 244 were BTC Equivalents. While the company could benefit from rising Bitcoin prices in future, it could also incur losses if BTC prices fall as they have this year, eroding the firm’s unrealised profits.
Overall, investors remain optimistic about Argo Blockchain and Bitcoin prices, which were up $1,468 (7.60%) earlier today. However, the company’s mining margins in August shrunk to 20%, driven by an 11% decline in Bitcoin prices and higher electricity costs.
Peter Wall, Argo Blockchain’s CEO, said: “The increase in BTC mined this month reflects the hard work put in by our operations team. The new Bitmain SJ19 Pros are already showing great promise, and we look forward to unlocking their full potential in the coming months as we complete their installation.”
So, should you buy Argo Blockchain shares? The short answer is that ARB shares attract investors who want exposure to cryptos without buying actual cryptos.
*This is not investment advice.
Argo Blockchain share price.
The Argo Blockchain share price surged 10.14% to trade at 38.00p, rising from Thursday’s closing price of 34.50p.