Argo Blockchain (ARB) stock jumps after bitcoin output boost
By Neil Dennis
12:00, 7 December 2021
Shares in Argo Blockchain (ARB) jumped 8% on Tuesday after the cryptocurrency miner raised its bitcoin output during November.
Argo stock rose 7% to 114.9p in early afternoon trade on the London Stock Exchange. In early pre-market trade on the US Nasdaq exchange, Argo American depositary receipts (ADR) were up nearly 11% at $13.52.
Raising output
The company, which is listed on the LSE and on the Nasdaq Global Select Market in the US, said it mined a total of 185 bitcoin or bitcoin equivalent in November, compared with 167 in October, bringing the total number mined this year to 1,831.
Based on daily foreign exchange rates and crypto prices during the month, Argo said its mining revenue in November was £8.29m ($11.2m), compared with £7.24m in October. Argo generated this revenue at a margin of 86%.
What is your sentiment on BTC/USD?
Expansion
The company, which formed in 2017 and floated during the summer of 2018 at just 17p a share, owns state-of-the-art mining facilities in North America and uses inexpensive hydro-electricity to power its energy sapping operations to achieve high profit margins.
Argo said on Tuesday that by the end of November it owned 2,317 bitcoin or bitcoin equivalent.
It added it was continuing to expand its mining capacity by an additional 310 petahash per second, bringing its total capacity up to 1.605 exahash per second by the end of November.
Shares, however, have been on the decline for much of the year as energy costs have mounted. Indeed, the bitcoin mining sector has seen some sharp losses in recent sessions over such concerns.
Read more: Crypto mining stocks falling over energy use concerns
Markets in this article
Related topics