17th Apr 2019 15:13
LONDON (Alliance News) - Argo Blockchain PLC on Wednesday said it intends to refocus and temporarily close its mining-as-a-service platform after reporting a loss in its maiden financial year.
The UK-based provider of cryptocurrency mining services floated on the London Stock Exchange in June last year, raising GBP20 million in its initial public offering at 8 pence a share.
The stock was trading 6.6% lower on Wednesday at 3.27p a share.
For the period from incorporation in December 2017 to the end of 2018, Argo reported pretax loss of GBP4.1 million on a revenue of GBP764,562.
During the year, the company has successfully launched and rolled out a consumer-facing mining-as-a-service platform with two operational centres in Canada.
Argo noted that despite challenging market conditions it sold more than 10,000 monthly packages by the 2018 end, exceeding internal growth targets.
"The results reflect our first year's performance from start-up and were better than our expectations," said Executive Chair Jonathan Bixby.
"In response to challenging market conditions the group has taken prudent steps to transition its mining business to ride out the current downturn and position Argo for new opportunities being presented by the downturn. As a result the group expects to turn Ebitda break-even in the second half of this year, which is earlier that its original expectations at the time of flotation," added Bixby.
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