Publicly listed crypto mining company Argo Blockchain has stated that it is anticipating to break even this quarter after its investment in new equipment was finalized.
In a London Stock Exchange (LSE) press release on May 8, the struggling company stated that its new batch of 1,000 Bitmain Z11 miners was brought to production last week and that the directors anticipate margins to increase as an effect.
Argo, which provided mining services through a subscription model, secured around $32.5 million through an IPO conducted in August 2018. Its value has since decreased though, and in its last year’s financial report, the company reported a £4.1 million pre-tax loss (or $5.3 million USD).
With the new units in production, the company is “confident” it will reach roughly 400 bitcoins (around $2.3 million at current price) on its balance sheet by the end of the second quarter. Meanwhile, mining costs are anticipated to reach roughly £300,000 (or $391,000) in Q2.
Argo’s executive chairman Jonathan Bixby said:
“Argo expects to turn EBITDA [earnings before interest, taxes, depreciation, and amortization] break-even in the second half of this year.”
“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,” Bixby added.
The company mentioned that it is also contemplating on buying another 1,000 Bitmain AntMiner S17s for around £1.7 million ($2.2 million) to be brought in production in early July.
Last month, controversial oil mogul Frank Timis was discovered to have the largest shares in Argo and was trying to oust executives at the company. Argo requested shareholders to decline the bid at the time.