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finnCap upgrades Argo forecast after record revenues

By Daniela Ešnerová

13:12, 2 November 2021

A pile of Bitcoin tokens
Argo Blockchain mined a total of 597 bitcoins in the third quarter – Photo: Shutterstock

Analysts from UK-based investment adviser and broker finnCap upgraded their forecast for dual-listed Argo Blockchain after the crypto-mining company posted record revenues yesterday. 

The London-headquartered firm, which has operations in the US and Canada, is the only crypto-mining company listed on the London Stock Exchange. As of 23 September, Argo has also been listed on Nasdaq.  

Argo registered record revenues of $26m (€22.5m, £19.1m) in the third quarter, after it had mined 597 bitcoins in the period, its trading update from yesterday shows.  

Revised share-price predictions

In a note published today, finCapp analysts Michael Hill and Andrew Darley, directors of research at finnCap, revised their share-price prediction forward from £2.40 to £2.70. 

Commenting on the upgrade, the research authors wrote: “Following bitcoin increasing to over $60k, and greater clarity on the impacts of the Chinese government and many Chinese provinces effectively banning bitcoin mining from May, we upgrade our FY21 and FY22 revenue by +9% and +33%.”

BCH/USD

370.75 Price
-1.680% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

60,021.00 Price
+2.520% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.53 Price
-2.400% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.11 Price
+1.140% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

They go on to explain that the upgrade reflects a 25% increase in the price of the bitcoin they use, as well as decreasing the difficulties of mining and the cost of the mining machines.

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Capitalising on the Texas facility

The analysts welcomed Argo’s developments on its renewable energy-focused, 200-megawatt (MW) Texas facility, based in Dickens County, Texas, which it acquired in July. 

The new Helios facility will bolster Argo’s mining capacity and is expected to add at least 20 new, full-time jobs to residents in the area. The site is also expected to give Argo access to up to 800MW of electrical power.

The analysts wrote: “As Argo looks to capitalise upon the opportunity for its transformational new Texas facility, it announced in September 2021 that it had ordered 20,000 new Bitmain machines to scale its capacity to 3.7 exahashes (EH/s) by the end of the third quarter of 2022, which was in line with our expectations.”

The analysts added that Argo’s expansion is set to transform the group’s scale and deliver revenue of over £110m in bitcoin or bitcoin equivalent, worth up to $50k, in 2022.

Read more: Argo Blockchain will build a rewewable cryptocurrency mine in Texas

Markets in this article

ARBgb
Argo Blockchain plc
0.0910 USD
-0.005 -5.950%
ARBgb
Argo Blockchain plc
0.0910 USD
-0.005 -5.950%
ARBgb
Argo Blockchain plc
0.0910 USD
-0.005 -5.950%
ARBgb
Argo Blockchain plc
0.0910 USD
-0.005 -5.950%
ARBgb
Argo Blockchain plc
0.0910 USD
-0.005 -5.950%

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