Argo Blockchain (ARB)

Sector:

IT Services

16.15p
   
  • Change Today:
    -2.05p
  • 52 Week High: 80.00
  • 52 Week Low: 2.50
  • Currency: UK Pounds
  • Shares Issued: 477.83m
  • Volume: 6,308,998
  • Market Cap: £77.17m
  • RiskGrade: 1,097

Crypto volatility forces Argo Blockchain to terminate mining contracts

By Josh White

Date: Friday 15 Feb 2019

LONDON (ShareCast) - (Sharecast News) - Cryptocurrency mining service provider Argo Blockchain announced a refocus of its business strategy on Friday, in light of what it described as "continuing difficult trading conditions" in the cryptocurrency market, as digital currencies faced "severe" price pressure and volatility.
The London-listed firm said that as a result of the challenging conditions, it had ceased accepting new mining subscriptions and would terminate all existing mining-as-a-service (MaaS) contracts by 1 April.

It said the shift in strategy followed more than six months of better-than-expected growth achieved by Argo's consumer business since its launch last summer.

Despite continuing demand for the services, the board said it was temporarily moving away from MaaS to mining directly for its own account.

Existing customers would be informed shortly of their service termination.

As part of the restructuring, the company said it was implementing "significant" cost-cutting, which was expected to lower its mining cost base, including ongoing expenses, by 35%.

The redeployment of the mining infrastructure and capital was expected to be profitable following a material reduction in input costs achieved from suppliers.

Argo said the restructuring measures and strategy refocus were expected to reduce the overall cash burn, and deliver EBITDA break-even in the second half of 2019.

As of 14 February, Argo's net cash balance amounted to around £15m.

"We are being proactive and strategic in light of the tough industry market conditions by taking swift action to cut costs and refocus our strategy," said Argo Blockchain co-founder and director Mike Edwards.

"While it is disappointing to make this shift after delivering better-than-expected growth during our first six months as a consumer business, we need to be prudent and act decisively in order to ride out the downturn and be in a strong position when industry fundamentals improve."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Argo Blockchain Market Data

Currency UK Pounds
Share Price 16.15p
Change Today -2.05p
% Change -11.26 %
52 Week High 80.00
52 Week Low 2.50
Volume 6,308,998
Shares Issued 477.83m
Market Cap £77.17m
RiskGrade 1,097

Argo Blockchain Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
79.90% above the market average79.90% above the market average79.90% above the market average79.90% above the market average79.90% above the market average
85.26% above the sector average85.26% above the sector average85.26% above the sector average85.26% above the sector average85.26% above the sector average
Price Trend
95.92% below the market average95.92% below the market average95.92% below the market average95.92% below the market average95.92% below the market average
92.23% below the sector average92.23% below the sector average92.23% below the sector average92.23% below the sector average92.23% below the sector average
Income Not Available
Growth
95.48% above the market average95.48% above the market average95.48% above the market average95.48% above the market average95.48% above the market average
97.96% above the sector average97.96% above the sector average97.96% above the sector average97.96% above the sector average97.96% above the sector average

Argo Blockchain Dividends

No dividends found

Trades for 09-Feb-2023

Time Volume / Share Price
11:18 5,994 @ 16.21p
11:17 1,748 @ 16.39p
11:17 12 @ 16.39p
11:15 178 @ 16.21p
11:11 1,750 @ 16.39p

Argo Blockchain Key Personnel

Chair Matthew Shaw

Top of Page