The ARB share price gains on record Q3 results, but drops back

The Argo Blockchain (LON: ARB) share price briefly climbed in response to Q3 earnings. But it quickly fell back, in an unenthusiastic response.

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Q3 figures are in from Argo Blockchain (LSE:ARB). They include record revenue in the quarter, of $26m (£19.3m). The ARB share price briefly climbed 5.7% in early trading, but quickly fell back. As I write, it’s around half a percentage point ahead.

ARB share price multibagger

Despite falling from their February peak, ARB shares are still up 1,800% over the past 12 months. The cryptocurrency miner reported record net income of $17.3m (£12.9m), with record EBITDA of $28.2m (£21m). For the nine months to 30 September, revenue reached $67.9m, with $27.1m net income, and $49.8m EBITDA.

During Q3, the firm mined 597 Bitcoin and Bitcoin equivalent (BTC). That was with an average direct cost per coin of $6,293 (£4,673). That’s significantly ahead of the current Bitcoin price, a little over $61,500 (£45,100) at the time of writing.

Current holdings, as of 30 September, stood at 1,836 BTC. That’s worth approximately $113m (£83m).

Argo tells us that the purchase of new machines for its new Texas facility should lift its total hashrate capacity to approximately 3.7 Exahash, up from 1.075 at the end of the quarter. Whatever an Exahash is, that’s a big rise.

New mining facility

The Q3 report also updated us on a couple of key, non-financial, events. Chief executive Peter Wall summed them up: “From breaking ground on our sustainable cryptocurrency mining facility in Dickens County, Texas to our public listing on Nasdaq in the United States, this quarter has been pivotal as Argo continues to scale.”

The new ADR listing on Nasdaq was completed on on 23 September. And Argo says the new Texas facility will provide up to 800 MW of electrical power.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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