Argo Blockchain PLC Announces December Update/Management Change/Share Allotment
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Insights
The reported increase in Bitcoin production and revenue for Argo Blockchain plc presents a positive outlook for the company's operational efficiency and ability to capitalize on favorable market conditions. The 25% revenue growth in December 2023, compared to the previous month, indicates robust performance amidst a dynamic cryptocurrency landscape. Investors should note that the consistent monthly revenue growth over 18% could signify a strong market position and operational agility in response to network difficulty changes.
It is also noteworthy that the company has accrued power credits, which can impact the bottom line by offsetting operational costs. The range of power credits estimated for Q4 2023 ($0.5 to $1 million) suggests a potential decrease from previous quarters, which may affect profitability margins. The company's ability to maintain profitability despite fluctuations in power costs and network difficulty will be a critical factor for investors to monitor.
An analysis of the cryptocurrency mining sector indicates that Argo Blockchain's performance is a reflection of the company's strategic initiatives to improve operational efficiency and adapt to increasing network difficulty. The increase in daily Bitcoin production, despite a 19% rise in network difficulty, suggests that Argo is effectively scaling its operations and optimizing its mining capabilities. This could be a competitive advantage in attracting investment as efficiency becomes more critical in a market where margins are often squeezed by rising energy costs and difficulty adjustments.
Furthermore, the mining sector is known for its volatility and the company's ability to hold digital assets on its balance sheet represents a strategic move to potentially benefit from favorable market swings. The balance of 9 Bitcoin and the equivalent of 18 Bitcoin in other digital assets may offer a buffer against market downturns, but also exposes the company to market volatility risk.
The report highlights Argo Blockchain's strategic positioning within the cryptocurrency mining industry, particularly in terms of the company's response to transaction fee variations and network difficulty changes. The fact that Argo has achieved a 4% increase in daily Bitcoin production despite an increase in network difficulty suggests an effective deployment of mining technology and infrastructure. For stakeholders, the company's technological adeptness and operational resilience are crucial factors that could influence its ability to sustain revenue growth in the face of fluctuating Bitcoin prices and mining rewards.
Additionally, the company's holdings in Bitcoin and other digital assets underscore a diversified approach to asset management. This diversification could mitigate risks associated with price volatility in a single cryptocurrency. Stakeholders should consider the potential impact of Bitcoin price movements on the company's asset valuation and the consequent effects on financial performance.
LONDON, ENGLAND / ACCESSWIRE / January 8, 2024 / Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for December 2023.
During the month of December, the Company mined 155 Bitcoin, or 5.0 Bitcoin per day. This is a
Mining revenue in December 2023 amounted to
As of 31 December 2023, the Company held 9 Bitcoin on its balance sheet and other digital assets worth the equivalent of 18 Bitcoin.
Month | Bitcoin Mined | Unaudited Mining Revenue, excluding power credits |
January 2023 | 168 | |
February 2023 | 162 | |
March 2023 | 161 | |
April 2023 | 144 | |
May 2023 | 173 | |
June 2023 | 139 | |
July 2023 | 129 | |
August 2023 | 105 | |
September 2023 | 136 | |
October 2023 | 143 | |
November 2023 | 145 | |
December 2023 | 155 |
(1) The Company accrued power credits of
Management Commentary
Argo's Chief Executive, Thomas Chippas, said, "I am delighted to close out 2023 with our strong performance both in December and in the full fourth quarter. During the fourth quarter, our daily production was 4.8 Bitcoin per day, which was a
Grant of Equity Awards
On 5 December 2023, the Company granted 1,379,727 Restricted Stock Units ("RSUs") in accordance with the 2022 Equity Incentive Plan approved by shareholders at the Company's 2022 Annual General Meeting. The RSUs vest over a three-year period, with first vesting occurring six months from the date of grant (at which point 6/36ths vest) and, thereafter, the RSUs vest at a rate of 3/36th per quarter for the remainder of the vesting period subject to the continued employment of the grantee.
Change to Company Management and Share Allotment
Effective 5 January 2024, Seif El-Bakly stepped down from his position as Chief Operating Officer to pursue other opportunities. The Company thanks Mr. El-Bakly for leading Argo as Interim CEO from February to November 2023, and it wishes him well. The operations team has been reporting to the Chief Strategy Officer Sebastien Chalus since February 2023, and Mr. Chalus will continue to oversee all operations going forward.
As part of Mr. El-Bakly's separation agreement, his previously awarded Performance Share Units ("PSUs") will vest effective 5 January 2024. To effectuate this vesting, the Company has issued 1,973,892 new ordinary shares of £0.001 each in the capital of the Company ("PSU Shares").
The new PSU Shares will rank pari passu with the existing Ordinary Shares in issue and application will be made for the new Ordinary Shares to be admitted to the Official List and to trading on the Main Market of the London Stock Exchange PLC ("PSU Admission"). PSU Admission is expected to occur, and dealings in the new Ordinary Shares commence, on 11 January 2024.
Total Voting Rights
Following the PSU Admission, the Company will have a total of 538,937,363 Ordinary Shares in issue. No Ordinary Shares are held in treasury. The above figure may be used by the Company's shareholders as the denominator for the calculations by which they can determine whether they are required to notify their interest in, or a change of their interest in, the Company under the FCA Disclosure Guidance and Transparency Rules.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
For further information please contact:
Argo Blockchain |
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Investor Relations | |
Tennyson Securities |
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Corporate Broker Peter Krens | +44 207 186 9030 |
Fortified Securities |
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Joint Broker Guy Wheatley, CFA | +44 7493 989014 |
Tancredi Intelligent Communication UK & Europe Media Relations |
About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With mining facilities in Quebec, mining operations in Texas, and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. For more information, visit www.argoblockchain.com.
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SOURCE: Argo Blockchain PLC
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FAQ
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