Argo Blockchain, the cryptocurrency mining firm, has just released its Q3 financial report detailing record-setting revenues for the period.
It has been reported that the London-headquartered company reported that it had mined 597 Bitcoin (BTC) and “BTC equivalents” during the third quarter of 2021. At current prices, Argo’s Bitcoin haul would be worth around $36.5 million.
However, as of Saturday, the firm had amassed holdings of 1,836 BTC (around $113 million at current prices). Argo also reported a gross margin of 120% and a mining net margin of 85%, estimating it cost the firm just $6,293 to mine each Bitcoin on average. Overall, the firm generated record revenue of $26 million and pocketed $17.3 million in net profits.
The report said that for the nine months ending on Saturday, the firm’s revenue and net income were $67.9 million and $27.1 million. In the first half of 2021, Argo reported revenue of $42.3 million.
Peter Wall, the CEO of Argo Blockchain, attributed the profitable period to growth from its Helios facility in Texas and September 23 initial public offering on the Nasdaq.
“From breaking ground on our sustainable cryptocurrency mining facility in Dickens County, Texas to our public listing on Nasdaq in the United States, this quarter has been pivotal as Argo continues to scale.”
Likewise, in March, Argo purchased a 320-acre plot of land in Texas to expand its mining operations and provide it with 200 megawatts of renewable energy. In August, the company claimed that its crypto operations had become “climate positive” for a number of greenhouse gas emission categories. On Saturday, the company entered into a purchase agreement for 20,000 Bitmain Antminer S19J Pro machines for the new facility.
Delivery is expected in the second quarter of 2022, and the new hardware will increase Argo’s total hash rate capacity to around 3.7 exahashes per second (EH/s), up from 1.07 EH/s at the end of Q3, 2021. On September 10, Argo had secured a $25-million Bitcoin-backed loan from venture firm Galaxy Digital.
Thus, this follows a similar BTC-backed loan for $20 million it secured in June. The funds will be used to further develop its Texas facility.