Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) reported a 24% increase in first-quarter earnings on revenue up 9% as it increased its mining hashrate and prepared to begin operations at the Cut- Edge Helios in Texas, which opened this month.
The cryptocurrency miner generated underlying profit (adjusted EBITDA) of US$19.1m (£14.5m) for the first three months of 2022, compared to US$15.4m one year earlier.
Revenue of US$19.5 million was up from US$17.8 million, which was attributed to an improvement in the hash rate over the past year, partially offset by lower bitcoin price over the last quarter.
Showing it more vividly, a net profit of US$2.1 million compared to US$25.3 million a year ago, when bitcoin ended the period near US$59,000.
Total bitcoins mined in the quarter increased by 21% to 470 bitcoins and equivalents (together, BTC), from 387 BTC mined in the same period of 2021, with a mining margin of 76%, equivalent at a cost of USD 9,779 per bitcoin mined.
With the Helios facility beginning bitcoin mining activities on May 5, 2022, Argo plans to increase its hash rate to 5.5 exahash per second (EH/s) by the end of 2022 from 1, 6 EH/s at the end of last year, subject to the machine. deliveries.
“During the first quarter, our team focused on completing Helios Phase 1, while continuing to deliver strong performance from our existing fleet,” said Managing Director Peter Wall.
He added: “To be a successful miner, you need three things: power, miners and capital. We already have a solid foundation for growth at Helios with our access to 800 MW of electrical capacity. »
On capital, he praised the non-dilutive funding relationship with the New York Digital Investment Group (NYDIG) and said access to miners had been boosted through a supply deal with Intel for new Blockscale ASIC chips.
“This will allow us to build custom-designed mining machines specifically to Argo’s specifications and designed for use in immersion cooling technology.”
The quarter ended with Argo holding 2,700 BTC, which, combined with a cash balance of $11.9 million, meant, he said, the company had “adequate liquidity.”