The mining company The publicly traded Argo Blockchain has released bullish partial results for the first half of 2020 despite the recent halving of Bitcoin (BTC) and a series of “challenging conditions”.
Argo Blockchain PLC is based in London and its shares are listed on the main market of the London Stock Exchange. For the six months ended June 30, the company’s revenue reached £ 11.2 million ($ 14.48 million), an increase of 280% over the first half of 2019 (£ 2.93 million or more) 3, $ 79 million).
According to the company, The increase in income reflects a “significant increase in production”. The total number of bitcoin mined in the first six months of 2020 reached 1,669 BTC, 545% more than in the first half of 2019 (306 BTC).
Peter Wall, CEO of Argo, told Cointelegraph that over the past year the company has “been strategically focused on investing in new mining equipment and operating it as efficiently as possible.”
The interim report of Argo reveals the scope of the company’s “major infrastructure build”, installing and producing around 11,000 new machines in the first three months of the year to mine Bitcoin.
This expansion has apparently helped achieve strong results in the run-up to Bitcoin halving in May 2020, despite “considerable uncertainty” and the “very volatile price environment” for cryptocurrencies.
As previously reported, “halving” refers to the periodic, pre-coded reduction in mining rewards of 50% for each block on the Bitcoin blockchain. The halving event in May was eagerly awaited and watched closely by the crypto community as it affected both the coin price and miners.
Argo’s management summed up the impact of the halving over six turbulent months, noting that the halving “puts more pressure on inefficient miners and can affect difficulty levels”.
Wall told Cointelegraph, “We are closely monitoring the difficulty of SHA-256 hashrate and mining, and expect both to continue to increase in the second half of this year as newer machines go online.”
“The prospects for mining, especially since the halving in May, are clearly consolidating further,” said Wall. He highlighted:
“In the post-halving world, it’s not surprising that smaller and less efficient miners are struggling to hold their own due to lower rewards and increased competitiveness.”
Beyond Bitcoin, Argo bought and installed 750 more Antminer Bitmain machines to mine Zcash (ZEC) using the Equihash algorithm.. This has brought the total number of Zcash mining machines along with older models to 1,750.
This year’s expansion, along with what Argo refers to as a set of “proprietary machine optimization tools” developed by its technology team, was obviously an important factor in handling this spring’s tough business environment.
For the first half of 2020 Argo’s mining margin was 39%, a number that the company said was affected by both the impact of the halving and weak market prices.
The Argo report also notes that in the first half of 2020 “The mining industry was slightly more affected by known quality issues with Bitmain T17 miners installed during the period” and affecting “machine availability and overall efficiency.”. Argo is reportedly in talks with Bitmain and its host to discuss the consequences of this situation.
According to Argo’s management, the global pandemic eventually brought “new execution risks” to the company, although this factor apparently “has not affected previous operations”.