The crypto miner reported a 120% jump in revenues during the year, adding that all of its mining machines have now achieved over 100% return on investment
() swung into profit in 2020 as the cryptocurrency miner said it had crossed “a major inflexion point” during the year amid a surge in revenues.
In its results for the year to December 31, 2020, the company reported a net profit of £1.7mln compared to a £0.7mln loss in 2019 as revenues jumped 120% to £19mln.
The number of Bitcoins mined during the year also increased 85% to 2,465 during the year, while Argo said it had ended the year with cash and digital assets worth £6.7mln compared to £1.2mln at the end of the prior year.
Margins, meanwhile, decreased to 41% from 60%, however, the company said it had reached this level despite “challenging market conditions” including the coronavirus pandemic and a Bitcoin halving in May last year, a process that increases the difficulty of crypto mining.
Post-period, the firm said all of its mining machines, including those installed in January and February 2021, have achieved over 100% return on investment, adding that the first quarter of the current year was its most profitable quarter to date with 387 Bitcoin mined with revenues of £13.4mln and a mining margin of 81%.
Looking ahead, Argo said its strong start in the first quarter had been driven by a rise in Bitcoin prices and stable mining difficulty, while continued investment in new mining capacity, new ventures and a strong balance sheet have positioned it for long-term growth.
The group also said it is “well placed to benefit” from what it said were robust trading conditions amid “buoyant demand for cryptocurrency”.
“Argo crossed a major inflexion point in 2020 in its history by achieving full-year profitability on a 120% increase in revenue, our second consecutive year of triple-digit top-line growth. With a proven management team, world-class mining infrastructure, and strong tailwinds from the industry’s recent growth, the board looks forward to the future with great confidence”, Argo chief executive Peter Wall said in a statement.