Argo Blockchain, a London-based cryptocurrency mining firm has upgraded its 2019 second quarter forecast in light of the crypto market upturn.
As a result of the news of Argo’s revised forecast, shares in the firm reportedly spiked 20% to 6.29 pence (around $0.08) during morning trading hours today. The firm has a market capitalization of £18 million (around $22.8 million), Alliance notes.
By the end of Q2 2019, Argo says it expects to generate 420 bitcoin (BTC) worth of crypto assets on its balance sheet. Based on bitcoin’s May 31 price of $8,575, this equates to roughly $3.6 million. The new estimate is 57% higher than Argo’s initial forecast, Alliance notes, and has ostensibly been revised upwards in light of bitcoin’s positive price performance this spring.
Argo’s first forecast for Q2 2019 was published on May 8, but the firm has reportedly stated that the trading climate has been “significantly better than expected,” making a revision necessary.
Also based on bitcoin’s May 31st valuation, Argo has also stated it expects to generate around £685,000 ($866,261) in crypto assets in May — 37% above prior guidance. Cash operating costs for May have been retained at previous estimates, at £280,000 ($354,110).
Argo also reported the delivery of its new crypto mining gear a month before schedule. Accordingly, it has reportedly ordered a batch of new mining hardware at a cost of £2.9 million ($3.6 million), for production in Q2 and Q3 2019.