Argo Blockchain Sees Mining Revenue Rise Tenfold in 2019

Argo Blockchain Sees Mining Revenue Rise Tenfold in 2019

Publicly-listed mining company Argo Blockchain increased its revenue by more than 10 times in 2019

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Publicly-listed mining company Argo Blockchain had a tenfold increase in revenue for 2019 over the previous year, ProactiveInvestors reports on Jan. 20. Its shares bounced as the company plans further expansion in the upcoming year.

Argo Blockchain PLC is a company operating mining rigs for profit, as well as providing Mining-as-a-Service (MaaS) to institutional investors who are “looking to hold specific coins but do not want to procure via exchanges.”

Based in London and listed on the London Stock Exchange (LSE), its mining capacity is reportedly based in Quebec, leveraging the region’s cheap hydroelectric power.

In a trading update, the firm reports that it expects revenues for 2019 to be £8.5 million ($11 million), a more than tenfold increase from 2018’s £760,000 ($987,000) figure, despite a significant slowdown in the last quarter of the year as markets cooled off.

The company produced 432 Bitcoin (BTC) during its operation, compared to 426 in Q3 2019. Nevertheless, its revenue fell from £3.63 million ($4.7 million) in Q3 to £2.66 million ($3.45 million) in Q4, citing a decline in cryptocurrency prices, “increased mining difficulty,” and unfavorable foreign exchange rates.

Mining margins, or the value of the currencies compared to the production cost, remained healthy at 52 percent in Q4 2019, despite a fall from 73 percent in Q3.

The firm is making a commitment to significantly expand its operation, having almost doubled its mining rigs since the start of 2020. Its goal is to reach 17,000 mining rigs by the end of Q1 2020.

Pressure from Bitcoin halving

Most of Argo Blockchain’s mining power is reported to be in Bitcoin mining rigs. As the Bitcoin halving is set to occur around May, the mining industry is feeling the pressure from a 50 percent drop in supply expansion rates. Bitmain, one of the leading producers of mining rigs, laid off 50 percent of its staff in anticipation of the event.

Though Argo claims to have “one of the highest efficiency rates in the market,” the halving is likely to be a period of great uncertainty. 

The revenue shock might be compensated by an appropriate increase in Bitcoin price, as several experts claim the halving is not priced in by the market. However, others argue that it will not lead to increased BTC price at all.


Zur Quelle
[/ihc-hide-content]

Publicly-listed mining company Argo Blockchain increased its revenue by more than 10 times in 2019

Ethereum Researcher: Ethereum to Reduce Issuance Ten-Fold by 2021

Ethereum Researcher: Ethereum to Reduce Issuance Ten-Fold by 2021

Justin Drake, an Ethereum 2.0 researcher at the Ethereum Foundation, said that ETH issuance might see a 90% reduction

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Ethereum (ETH) might decrease issuance ten-fold by 2021, said Justin Drake, an Ethereum 2.0 researcher at the Ethereum Foundation, as technology-focused news outlet Trustnodes reported on July 5.

Drake reportedly set out a possible timeline, saying:

“Here’s a possible timeline (dates likely totally wrong!) highlighting the key milestones: January 2020: beacon chain launch. June 2020: eth2 light clients production-ready. November 2020: eth1 fork #1 to have its fork choice rule honour eth2 finality (conservatively, no issuance reduced). March 2021: eth1 fork #2 to reduce issuance by 10x.”

Drake further stressed that there are several non-technical issues which are harder for him to predict. Specifically, these are “how fast we will get 2 million ETH (65,000 validators) for the beacon chain launch,” and “how fast eth1 governance is willing to move with the two hard forks.”

Ethereum developers reportedly estimate full sharding to happen by 2021, with a few years needed for the ecosystem to migrate to the point proof-of-work (PoW) can be discarded.

In mid-June, Drake said in a bi-weekly call of Ethereum core developers that the first stage of the Ethereum network’s transition to Ethereum 2.0 is expected to take place on January 3, 2020. At the time, the dev team was ostensibly working on code specifications for phase zero — the first transition stage of the Ethereum network from a PoW to a proof-of-stake consensus algorithm, which would pass block validation function from miners to special network validators.

As recently reported, daily transactions registered on the Ethereum network exceeded one million on June 28 for the first time since May 2018. The on-chain transaction value of Ethereum hit a monthly transaction high in December 2018.

As crypto analytics firm Diar reported in May, Ethereum volumes on decentralized applications (DApps) registered a new high in April, with 776,000 ETH transacted.


Zur Quelle
[/ihc-hide-content]

Justin Drake, an Ethereum 2.0 researcher at the Ethereum Foundation, said that ETH issuance might see a 90% reduction