Shares of Argo Blockchain (LON: ARB) closed higher on Wednesday after the company provided an operational update for January stating that it mined 93 bitcoin or bitcoin equivalent compared to 96 in December.
Based on daily foreign exchange rates and cryptocurrency prices during the month, Argo’s mining revenue for January amounted to £2.48 million compared to December 2020 when it was £1.63 million.
The company generated the income at an average monthly mining margin of approximately 71% compared to 60% in December 2020.
At the end of January, Argo held 501 bitcoin and bitcoin equivalents with the second half of January seeing them purchase a total of 172.5 bitcoin as part of its asset management strategy.
Its total mining capacity is currently 787 petahash in addition to 280 Megasols of equihash mining capacity.
Elsewhere Argo also revealed the company's wholly-owned subsidiary, Argo Innovation Labs Inc, has signed a share purchase agreement with GPU.one to acquire two data centres in Quebec Canada. The facilities are currently owned by GPU.one and have a portion of Argo’s cryptocurrency mining equipment with a power capacity standing at 20MW.
The company expects to close the purchase within the coming weeks, funded by its existing deposits with GPU.one.
Argo CEO, Peter Wall said: “I am thrilled that Argo has delivered our best month in the company's history in both mining revenue and profits. The year has started off very strong. I'm also pleased we have signed the Share Purchase Agreement with GPU.one, an important step in us closing this transaction, and taking over those facilities ourselves.”
Argos shares closed the day out at 94.6p up over 10% from Tuesdays close.
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.