Argo Blockchain, a bitcoin mining firm listed on the London Stock Exchange, reported stellar 2019 earnings Wednesday. The company attributed its success to cutting off its consumer-facing arm and focusing on mining some 1,330 bitcoin (BTC) on the year.
In its full-year results, Argo said 2019 revenue was up 11-fold from the year before, a dramatic spike from $948,000 to $10.7 million. Argo's earnings before interest, tax, depreciation and amortization (EBITDA) came to $1.74 million, compared to a $4.56 million loss in 2018.
While partly the result of a significant capital outlay into mining equipment – with the number of active rigs increasing from 10,000 to 17,000 by year's end – the company said it also made savings by moving from its original mining-as-a-service (MaaS) business to mining for itself.
Whole areas of the business, including customer support and acquisition, could be axed, the report said, with significant reductions also being made in the marketing budget. The company also shrunk its headcount from 11 to seven.
CEO Peter Wall told CoinDesk the company's pivot last year means it can now focus all of its energies on optimizing mining equipment and remain competitive against its rivals. He said the move puts Argo in a good position to deal with the volatility and uncertainty from the COVID-19 pandemic and the upcoming bitcoin halving event.
"The lockdown in the first half of 2020 has thrown a curveball into the global economy, which is being felt everywhere," Wall said. "However, given the crucial infrastructure investment Argo made last year, we now find ourselves in a very good place." Read More