Bitcoin mining profits saw a 24% uptick at UK-based crypto mining services provider Argo BlockChain, according to a report released by the platform on July 2. The mining operator ascribed the growth to the surge in the market value of bitcoin over the first half of the year, and higher production of crypto assets from the company’s mining equipment.
According to the report, the company held approximately GBP3.07m in crypto assets on its balance sheet as of 30 June 2019, with market prices of BTC rallying at $10,817.16 USD. This was approximately GBP220,000 or 7.7% higher than the previously announced revised estimate of GBP2.85m.
Argo, who had previously reported that the firm benefited from the BTC market rally, said that it expects subsequent revenues to be better than previous estimates.
“The Company now expects to generate 161 BTC, or GBP1.38m of crypto assets, in June based on a BTC price of $10,817.16 USD as of 30 June 2019,” the report reads.
The predicted growth will be approximately 101% higher than the company’s May mining results and will represent a mining margin of roughly 81%. Upon actualization of these numbers, Argo may become one of the most efficient miners in the market.
Argo also reported the delivery of its new mining hardware in June, at a cost of £2.9 million ($3.6 million), for production in Q2 and Q3 2019. Putting industry processes into consideration, the company said that it expects to achieve a Return on Investment (ROI) on its existing mining hardware in less than 5 months. If things continue at this rate, Argo hopes to cover the cost of their operational rigs in revenue before Q3 2019.
Since BTC began its bull run in April, the market has experienced significant improvement, and competition is higher than ever before on the crypto market. Data from crypto data provider Blockchain.com revealed that Bitcoin’s (BTC) mining difficulty has hit an all-time high. This is a surefire indicator that more miners are putting efforts into computing for block rewards than ever.
However, Argo is not the only crypto entity to experience explosive growth in Q2 2019. The June 26 market high of over $13,000 was accompanied by a record $33 billion trading volume across cryptocurrency exchanges, according to data from CoinMarketCap.
Although BTC/USD is trading at $10,658 at press time, analysts are predicting that the 2020 halving will impact the market value of the popular crypto asset positively, and this is currently driving investors to buy cryptocurrency before they become nearly impossible to obtain.
However, it remains to be seen what effects the halving will have on Bitcoin miners like Argo, but if things go their way, the mining operator would have covered costs before their efforts start yielding less crypto than it does now.