Argo Blockchain (LON: ARB) has released its annual financials for 2021, reporting a 291 percent increase in revenue to £74.2 million ($100.1 million). It was driven by both the company’s operational improvements and the overall industry effects.
Argo highlighted multiple factors that benefited its business last year: a significant increase in its hashrate, a temporary drop in Bitcoin mining difficulty , and a rise in Bitcoin’s fiat value.
The company even improved its mining margin to 84 percent from the previous year’s 41 percent. It was mostly due to the drop in global hashrate after the ban on Bitcoin mining in China in May 2021.
The impressive operational figures pushed the EBITDA of the Bitcoin mining company to £52.9 million ($71.4 million), which was a jump of 594 percent. The net income of the company stood at £30.8m ($41.5 million), which is a year-over-year increase of 2,033 percent.
“2021 was truly a year of transformation for Argo as we accomplished key milestones to strengthen the foundation of the Group and position us for long-term success,” said Argo’s CEO, Peter Wall.
Mined Less Bitcoins
The company mined 2,045 Bitcoins last year, which was 17 percent lower than in 2020. The decrease was due to the halving of the Bitcoin mining rewards. At the end of the year, Argo held cash and digital assets amounting to £92.6 million ($124.9 million). This figure jumped to 2,700 Bitcoin and Bitcoin equivalents valued at £93.6 million ($122.9 million) at the end of March 2022.
Meanwhile, Argo scaled its operations last year with acquisitions. It bought the Texas-based Helios project with a power capacity of up to 800MW and two data centers in Quebec, Canada with a combined capacity of 20MW. The operations at Helios is expected to begin in May 2022.
Furthermore, it purchased 20,000 Bitmain S19J Pro mining machines which are expected to be installed by October 2022.
“The acquisition of Helios provided us with the opportunity to build a best-in-class, vertically-integrated facility with access to low-cost and sustainable electricity, which is unmatched by our peers,” said Wall.
