[ad_1]
The British mining cryptosystem supplier, Argo Blockchain, has announced the refocusing of its business as part of a major cost-cutting exercise, according to a strategy update released Feb. 15.
Argo, headquartered in London with facilities in Quebec, announced the completion of its mining operations as a service (MaaS) by April, focusing solely on direct mining.
MaaS operators facilitate the use of cryptocurrencies on remotely borrowed equipment. Explaining his decision, Mr. Argo explained that the ongoing elimination of Bitcoin prices (BTC) and the reduction in mining profitability had reduced the size of his expenses.
"The redeployment of mining infrastructure and capital should be profitable as a result of a significant reduction in the costs of inputs made by suppliers," says the update, which states:
"The restructuring measures and the refocusing of the strategy should reduce overall cash consumption and generate EBITDA (earnings before interest, tax, depreciation and amortization) in the second half of 2019."
Along with the abandonment of MaaS, Argo plans to cut costs by more than a third in order to achieve its profitability goal.
CEO and co-founder Mike Edwards summarized:
"Even if it is disappointing to make this decision after posting better-than-expected growth in our first six months as a fast moving consumer, we need to be cautious and act decisively to overcome slowing down and being well positioned the fundamentals improve. "
The mining of Bitcoins has had a difficult year, with many companies facing problems with falling prices. Earlier Friday, Cointelegraph announced Nvidia's latest results, as the company's performance was heavily impacted by the crypto winter.
[ad_2]
Source link
