Argo Blockchain PLC Announces Financial Update and Listing Suspension Request

Rhea-AI Summary

Argo Blockchain has announced a delay in publishing its 2024 annual financial report, originally due April 30, 2025. The delay stems from resources being directed toward restating their 2023 20-F following an SEC review regarding digital assets accounting treatment.

The company has requested a temporary suspension of its shares from the London Stock Exchange starting May 1, 2025, with expected report publication around May 9, 2025. The 2023 restatement, completed April 22, 2025, resulted in decreased net losses for 2022-2023 and decreased net income for 2021.

Preliminary unaudited 2024 results show:

• Total revenue: $47.0M (down from $50.6M in 2023)
• Net loss: $54.4M (increased from $34.6M in 2023)
• Adjusted EBITDA: $5.6M (decreased from $7.7M)
• Cash balance: $8.6M (up from $7.4M)

Positive

• Cash balance improved to $8.6M in 2024 from $7.4M in 2023
• SEC review of 2023 restatement completed successfully on April 25, 2025
• Previous years' restatement resulted in decreased net losses for 2022-2023

Negative

• Revenue declined 7.1% to $47.0M in 2024 from $50.6M in 2023
• Net loss increased significantly to $54.4M in 2024 from $34.6M in 2023
• Adjusted EBITDA decreased to $5.6M in 2024 from $7.7M in 2023
• Temporary trading suspension requested on London Stock Exchange due to delayed financial report
• Delayed publication of 2024 annual financial report beyond regulatory deadline

Insights

Financial Reporting Specialist

Argo Blockchain's delayed financial filing triggers trading suspension amid widening losses and SEC-mandated accounting restatements for crypto assets.

Argo Blockchain's announcement contains multiple concerning elements for investors. The company will miss its regulatory deadline for filing 2024 financial statements, triggering a temporary suspension of its shares from the London Stock Exchange starting May 1, 2025. The delay stems from resources being diverted to address an SEC comment letter that required restatements of previous financial reports, specifically regarding the accounting treatment of digital assets.

The preliminary unaudited results reveal deteriorating financial performance. Revenue decreased from $50.6 million to $47.0 million, representing a 7.1% decline. More troubling is the substantial increase in net loss from $34.6 million to $54.4 million – a 57.2% larger loss year-over-year. Adjusted EBITDA also fell from $7.7 million to $5.6 million, a 27.3% decrease.

While the company expects to publish audited results around May 9 and has slightly more cash on hand ($8.6 million vs $7.4 million), this doesn't offset the concerning trajectory. The SEC-mandated restatement, though described as reducing previously reported losses, raises questions about the company's accounting practices and internal controls for crypto assets. The trading suspension creates immediate liquidity problems for shareholders unable to exit their positions during this period of uncertainty.

SEC Comment Letter Cleared

Publication Delay of Annual Financial Report to on or around 9 May 2025

2024 Preliminary Unaudited Financial Highlights

LONDON, ENGLAND / ACCESS Newswire / April 30, 2025 / Argo Blockchain plc announces that there will be a delay to the publication of its annual financial report for the year ended 31 December 2024 (2024 Financial Statements).

In accordance with the UK Listing Rules and the Disclosure Guidance and Transparency Rules, the Company is required to publish the 2024 Financial Statements by 30 April 2025. The Company's auditor, PKF Littlejohn LLP, has advised the Company that, while the audit process is near completion, it will not be finalised by the deadline.

The delay is due to management time and auditor resources being directed toward the restatement of the Company's annual report on Form 20-F for the year ended 31 December 2023 (2023 20-F). The restatement was filed in response to a comment letter received from the Securities and Exchange Commission (SEC) in connection with the SEC's review of the 2023 20-F to clarify the accounting treatment of the Company's digital assets. The restatement had to be completed prior to the finalisation of the 2024 Financial Statements. The Company filed its restated accounts with the SEC on 22 April 2025 and the SEC completed their review on 25 April 2025. The result of the restatement of the 2023 20-F was a decrease to the net loss in 2023 and 2022 and a decrease to net income in 2021. There was a reclassification of cash flows between operating activities and investing activities. There was no change to revenue or cash in any of the periods reported.

As a result of this delay, the Company has, in accordance with the UK Listing Rules, requested a temporary suspension of the listing of its ordinary shares from the Official List of the FCA and from trading on the Main Market of the London Stock Exchange with effect from 7:30 a.m. on 1 May 2025, pending publication of the 2024 Financial Statements.

The Company is working diligently with its auditors, PKF Littlejohn LLP, to complete the audit of the 2024 Financial Statements and expects to publish them on or around 9 May 2025. The Company will request a restoration of the listing of and trading in its ordinary shares following the publication of the 2024 Financial Statements.

In the meantime, the Company is providing the following unaudited preliminary financial highlights for the year ended 31 December 2024 with 31 December 2023 comparative:

	2024	2023
	($millions)	($millions)
	(unaudited)
Total revenue:	$47.0	$50.6
Net loss:	($54.4)	($34.6)
Adjusted EBITDA	$5.6	$7.7
Cash balance at 31 December 2024:	$8.6	$7.4

These preliminary results are unaudited and subject to change based on the completion of the full year-end audit process.

This announcement contains inside information.

For further information please contact:

Argo Blockchain
Investor Relations	ir@argoblockchain.com
Tennyson Securities
Corporate Broker Peter Krens	+44 207 186 9030
Fortified Securities
Joint Broker Guy Wheatley, CFA	+44 7493 989014 guy.wheatley@fortifiedsecurities.com
Tancredi Intelligent Communication UK & Europe Media Relations	argoblock@tancredigroup.com

About Argo:

Argo Blockchain plc is a dual-listed (LSE:ARB)(NASDAQ:ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With a mining facility in Quebec 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.

Forward looking statements

This announcement contains "forward-looking statements," which can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The information in this announcement about future plans and objectives of the Company are forward-looking statements. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, market and other conditions, the principal risks and uncertainties listed in the risk factors set forth in our Annual Report and Financial Statements and restated Form 20-F for the year ended 31 December 2023, and our Interim Report as of 30 September 2024.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Argo Blockchain PLC

View the original press release on ACCESS Newswire

FAQ

Why is Argo Blockchain (ARBK) stock suspended from trading on May 1, 2025?

Argo Blockchain requested a temporary suspension of its shares from the London Stock Exchange starting May 1, 2025, due to a delay in publishing their 2024 annual financial report. The company expects to resume trading after publishing the report around May 9, 2025.

What caused the delay in Argo Blockchain's 2024 financial report?

The delay was caused by management and auditor resources being directed toward restating the 2023 20-F report following an SEC comment letter regarding the accounting treatment of digital assets. The restatement had to be completed before finalizing the 2024 financial statements.

How did ARBK perform financially in 2024 vs 2023?

According to preliminary unaudited results, ARBK's revenue decreased from $50.6M to $47.0M, net loss increased from $34.6M to $54.4M, and Adjusted EBITDA declined from $7.7M to $5.6M. The cash balance improved slightly from $7.4M to $8.6M.

What impact did the SEC restatement have on Argo Blockchain's previous financial reports?

The SEC-mandated restatement resulted in decreased net losses for 2023 and 2022, and decreased net income for 2021. It also led to reclassification of cash flows between operating and investing activities, but did not affect revenue or cash in any reported periods.

When will Argo Blockchain (ARBK) publish its 2024 annual financial report?

Argo Blockchain expects to publish its 2024 annual financial report on or around May 9, 2025, following completion of the audit by PKF Littlejohn LLP.