Argo Blockchain Sees 2,033% Jump in 2021 Net Income

The company benefited from the reduced hashrate last year.

It is expecting to kick off operations at Helios in May.

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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 Bitcoins fiat value.

The company even improved its mining margin to 84 percent from the previous years 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), 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 Argos 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 amounted 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 also scaled its operations last year with acquisitions. It bought the Texas-based Helios project with a power capacity of up to 800MW and also two data centers in Quebec, Canada with a combined capacity of 20MW. The operations at Helios is expected to begin in May 2022.

It also 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.