Publicly listed crypto mining firm Argo Blockchain has said it's expecting to break even this quarter after a recent investment in new equipment.
In a press release posted on the London Stock Exchange (LSE) website Wednesday, the struggling firm said that its new batch of 1,000 Bitmain Z11 miners came into production last week and that the directors expect margins to improve as a result.
With the new units in production, the firm is “confident” it will have around 400 bitcoins (valued at $2.3 million currently) on its balance sheet by the end of Q2. Mining costs, on the other hand, are estimated to increase to around £300,000 (or $391,000) for the quarter.
Jonathan Bixby, the firm’s executive chairman, said:
“We strongly believe that the cryptocurrency market has considerable long-term potential to become a major asset class and that the correct strategy is to continue to invest in mining infrastructure at current prices," he added.
The firm indicated it's also considering the purchase of an additional 1,000 Bitmain AntMiner S17s for about £1.7 million ($2.2 million) to be put into production in early July.
Last month, controversial oil tycoon Frank Timis was revealed to be the biggest shareholder in Argo and was attempting to oust executives at the firm. Argo appealed to shareholders to block the bid at the time.
Mining equipment image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.