Amidst the ongoing market rout where thousands of crypto miners are shutting down their rigs, crypto mining company, Argo blockchain says it is registering huge demand and significant growth.
Crypto Miners not affected by Price Crash
A crypto winter is in full effect as Bitcoin price slids down below $4,000 and even breaking $3,500 support at one point. Bitcoin price has been maintaining stability at around $6,500 since September only to crash in mid-November.
The plunge in Bitcoin price led to the drop in the hash rate of Bitcoin Network that follows price. It then resulted in a fall in difficulty.
As hash rate got hit, thousands of miners shut down their rigs due to a decrease in their profitability along with obsolescence of mining devices. A number of miners reported to have are quit the market amidst the red market.
However, not all mining-related companies or service providers are affected as crypto mining firm, Argo blockchain says they are experiencing exactly the opposite. Actually, the packages page on the company’s website shows “sold out” tag.
Argo, that offers its devices on subscription-basis is reported by the UK’s local media channel that the total number of packages sold by the mining firm has increased from 4,200 in October to 10,325 in December.
The crypto mining company, Argo Blockchain PLC raised $32 million in August and became the first crypto company to get listed on the London Stock Exchange (LSE). In October, with the expansion of its crypto mining services, the company reported a ten-fold increase in the sale of its crypto mining packages after introducing new server technology to support more subscribers, in September.
Now, the firm is seeing more growth as it says the company’s target for package sale by January 2019 is not only ahead of schedule but also beaten by a big margin. The annualized revenue run-rate is further expected to be US$6.2mln (£4.8mln) in comparison to US$0.26mln when it was added on LSE. As of November 30, the net cash balances have been amounted to about £15 mln.
Mike Edwards, the co-founder and director of Argo says,
“Our mining packages are being snapped up as quickly as we make these available and demand continues to exceed supply.”
He further shares that despite the current situation of the crypto market, the company is “continuing to experience a strong ramp-up in revenues due to good execution of our growth strategy.”
In November Edward has said the demand for crypto mining services remains robust despite the downturn in the market. This time as well he says, the demand for these packages “continues to exceed supply” and the company looks “to the future with confidence.”
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.