Argo Blockchain PLC (LON:ARB) has announced today, that more than 3,800 new crypto mining packages have been recently signed up and entered into the application from today.
01 October 2018- Argo Blockchain PLC (LON:ARB) has announced today, that more than 3,800 new crypto mining packages have been recently signed up and entered into application from today.
The company reportedly witnessed a ten-fold increase in its sales of cryptocurrency mining packages, the thing that resulted in raising its shares early this afternoon.
Market experts read the increase as “the first significant ramp-up of revenues since its initial public offering (IPO) in August.”.
The media attributed the boost the company has made today to the step the company had taken early in September, where it expanded its mining capacity, making use of the new server technology it introduced, which allowed it to serve its subscribers seven times more.
Calling for capacity to support around 30,000 packages within the first 12 months of operations, the company confirms it would continue to add new capacity in line with its phased growth plans.
Mike Edwards- president of Argo, noted that the “strong uptick” in demand shows that the call for crypto mining services “remains robust” in spite of a recent plunge in the sector. “the firm would continue to execute our growth strategy as quickly as possible to meet this pent-up demand”, added Edwards.
US$18 Million in Bet for the First Year
In his turn, Alan Howard- Senior Equity Analyst at the company’s house broker, Mirabaud Securities, said that the company was operating an annualized revenue run rate of US$2.5mln, after three months from opening to customers.
“If the firm met its target of 30,000 packages within its first 12 months of business, the run rate would increase to US$18mln, which when coupled with estimates around hardware, customer acquisition, and electricity costs would result in Argo becoming earnings positive”, Howard added.
The Senior Equity Analyst explained as well, that, his company -which was recently registered with the London Stock Exchange- is well-positioned and able to develop a “mass market” on the longer term, and is highly profitable global crypto-mining service, noting that the company has already secured enough power capacity at highly attractive electricity costs (US$0.030-0.038 per kWh) to make sure it is able to service over 150,000 packages from its Canadian data centres,”.
It is worth mentioning that the company reportedly raised at its IPO, gross proceeds of £25mln, above its current market cap of around £22mln, and the shares were up 3.3% at 7.7p.
Stock Analysis: Argo Blockchain PLC (LON: ARB)
AtoZMarkets’ senior market analyst, Redwan Eid, has shared his insights ” Overall the technical charts look highly bearish on the daily & weekly charts, the stock has constantly been touching the lows since the past few months. Currently, the stock almost surged 4.5% to 7.830 with high volume trades. RSI(14) suggests that the stock got overbought, thus a little correction is expected from this point. Also, the ATR(14) signals that the stock is now extremely volatile to trade. Hence, I expect a slight correction near the strong support near $7.1 levels.”