Argo Blockchain PLC Announces Business Refocus Amid Bear Market Conditions
Argo Blockchain plc, a UK-based global data centre management firm that allows people to mine a vast array of digital currencies via its platform, has announced plans to refocus its business strategy, citing “severe price pressure and volatility” of the crypto markets, reported Investigate on February 15, 2019.
Argo no Longer Accepting New Mining Subscriptions
Following the current downturn in the price of bitcoin and other cryptocurrencies, a depressing situation that has made crypto mining seemingly unprofitable, Argo has announced it’s restructuring its business enable to cut costs and focus on more profitable ventures.
As part of the new strategy, the Company has made it clear that it would no longer accept new clients and all existing mining-as-a-service (MaaS) contracts will be terminated by April 1, 2019.
Though Argo has said it would soon stop offering crypto mining services to clients, the firm has hinted that it would launch new mining operations in its own account, in a bid to lower mining costs and other expenses by up to 35 percent.
It Pays to Be Prudent
Commenting on the matter, Mike Edwards, co-founder and director of Argo reiterated that the move is aimed at ensuring that the platform remains sustainable during the prolonged “crypto winter” and be ready for the bull market when it finally arrives.
“We are being proactive and strategic in light of the unfavourable market conditions by taking calculated steps to cut costs and refocus our strategy. While it is disappointing to orchestrate this shift after experiencing better-than-expected growth during our first six months as a consumer business, it’s critical for us to be prudent and act decisively in order to survive the downturn and be in a strong position when the market improves.”
According to the team, the restructuring will significantly slash its overall cash burn and enable it to break even by the second quarter of 2019.
Argo claims to have a net cash balance of GBP 14 million as of February 14, 2019.
It’s worth noting that Argo is not the only crypto-related business that has been forced to formulate new measures of beating the crypto bloodbath.
In December 2018, BTCManager informed that Bitmain had sacked 23 workers and shut down its Israeli developmental centre, in a bid to cut costs.
On February 7, 2019, BTCManager reported that Coinsquare, one of the largest crypto trading platforms in Canada had laid off more than 40 workers in its employ due to the bear market.