London-Listed Argo Blockchain Adds 1,000 Miners in Bid to Salvage Stock Price

Publicly listed crypto mining firm Argo Blockchain has said it's expecting to break even this quarter after a recent investment in new equipment.

In a press release posted on the London Stock Exchange website Wednesday, the struggling firm said that its new batch of 1,000 Bitmain Z11 miners came into production last week and that the directors expect margins to improve as a result.

Argo, which offers mining services via a subscription model, notably raised about $32.5 million.

Its value has since plummeted and, in its 2018 financial report, the firm disclosed a £4.1 million pre-tax loss.

With the new units in production, the firm is "Confident" it will have around 400 bitcoins on its balance sheet by the end of Q2. Mining costs, on the other hand, are estimated to increase to around £300,000 for the quarter.

"Argo expects to turn EBITDA break-even in the second half of this year."

"We strongly believe that the cryptocurrency market has considerable long-term potential to become a major asset class and that the correct strategy is to continue to invest in mining infrastructure at current prices," he added.

The firm indicated it's also considering the purchase of an additional 1,000 Bitmain AntMiner S17s for about £1.7 million to be put into production in early July.

Last month, controversial oil tycoon Frank Timis was revealed to be the biggest shareholder in Argo and was attempting to oust executives at the firm.

Argo appealed to shareholders to block the bid at the time.