Argo Blockchain PLC Announces January 2022 Operational Update
Argo Blockchain provided an operational update for January 2022, reporting a decrease in Bitcoin mining to 172 BTC from 214 BTC in December due to increased network difficulty. Mining revenue fell to £5.26 million ($7.10 million), down from £7.82 million ($10.55 million) in December, with a Bitcoin and Bitcoin Equivalent Mining Margin of 74%, a decline from 83%. The company holds 2,748 Bitcoin, including 262 BTC equivalents. CEO Peter Wall noted progress towards the new Helios mining facility, aiming for growth in 2022.
- Progress on the Helios mining facility, indicating potential growth opportunities.
- Retained a significant Bitcoin holding of 2,748 BTC, providing a buffer against market volatility.
- Decrease in mined Bitcoin from 214 BTC in December to 172 BTC in January.
- Drop in mining revenue from £7.82 million in December to £5.26 million in January.
- Reduction in Bitcoin and Bitcoin Equivalent Mining Margin from 83% to 74%.
LONDON, UK / ACCESSWIRE / February 7, 2022 /
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for January 2022.
During the month of January, Argo mined 172 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 214 BTC in December 2021. This reduction during January is primarily due to an increase in network difficulty.
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in January amounted to £5.26 million [
Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately
At the end of January, the Company owned 2,748 Bitcoin of which 262 were BTC equivalents.
Peter Wall, Chief Executive of Argo and interim Chairman, said: "As our mining operations continue to develop and the completion date of Helios, our new mining facility, approaches, this month we have laid the foundations for executing our growth strategy for 2022 and achieving the objectives we have set for the Company in the year ahead".
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin has limitations as an analytical tool. In particular, Bitcoin and Bitcoin Equivalent Mining Margin excludes the depreciation of mining equipment and so does not reflect the full cost of our mining operations, and it also excludes the effects of fluctuations in the value of digital currencies and realized losses on the sale of digital assets, which affect our IFRS gross profit. This measure should not be considered as an alternative to gross margin determined in accordance with IFRS, or other IFRS measures. This measure is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, our gross margin as determined in accordance with IFRS.
The following table shows a reconciliation of gross margin to Bitcoin and Bitcoin Equivalent Mining Margin, the most directly comparable IFRS measure, for the months of December 2021 and January 2022.
Month Ended 31 December 2021 | Month Ended 31January 2022 | |||||||
£ | $ | £ | $ | |||||
| Gross (loss) | (12,593,995) | (17,008,110) | (13,204,218) | (17,832,213) | ||||
| Gross Margin¹ | ( | ( | ( | ( | ||||
| Depreciation of mining equipment | 1,444,614 | 1,950,942 | 1,284,142 | 1,734,226 | ||||
| Charge in fair value of digital currencies | 18,271,429 | 24,675,448 | 15,460,310 | 20,879,050 | ||||
| Realised loss on sale of digital currencies | 740,713 | 1,000,328 | 331,171 | 447,244 | ||||
| Cryptocurrency management fees² | (1,388,635) | (1,875,343) | - | - | ||||
| Mining Profit | 6,474,126 | 8,743,265 | 3,871,405 | 5,228,308 | ||||
| Bitcoin and Bitcoin Equivalent Mining Margin | ||||||||
| (1) Due to unfavourable changes in fair value of Bitcoin and Bitcoin Equivalents in December 2021 and January 2022 there was a loss on change in fair value of digital currencies. | ||||||||
| (2) The cryptocurrency management fees include the settlement amount with Celsius and as such are higher than normal in December 2021. | ||||||||
*Dollar values translated from pound sterling into U.S. dollars using the noon buying rate of the Federal Reserve Bank of New York as at the applicable dates.
Forward-Looking Information
This announcement contains inside information and includes forward-looking statements which reflect the Company's or, as appropriate, the Directors' current views, interpretations, beliefs or expectations with respect to the Company's financial performance, business strategy and plans and objectives of management for future operations. These statements include forward-looking statements both with respect to the Company and the sector and industry in which the Company operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue", "estimate", "future", "opportunity", "potential" or, in each case, their negatives, and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties because they relate to events that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Accordingly, there are or will be important factors that could cause the Company's actual results, prospects and performance to differ materially from those indicated in these statements. In addition, even if the Company's actual results, prospects and performance are consistent with the forward-looking statements contained in this document, those results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to any obligations under the Prospectus Regulation Rules, the Market Abuse Regulation, the Listing Rules and the Disclosure and Transparency Rules and except as required by the FCA, the London Stock Exchange, the City Code or applicable law and regulations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. For a more complete discussion of factors that could cause our actual results to differ from those described in this announcement, please refer to the filings that Company makes from time to time with the United States Securities and Exchange Commission and the United Kingdom Financial Conduct Authority, including the section entitled "Risk Factors" in the Company's Registration Statement on Form F-1.
For further information please contact:
Argo Blockchain | |
Peter Wall Chief Executive | via Tancredi +44 203 434 2334 |
finnCap Ltd | |
Corporate Finance Jonny Franklin-Adams Tim Harper Joint Corporate Broker Sunila de Silva | +44 207 220 0500 |
Tennyson Securities | |
Joint Corporate Broker Peter Krens | +44 207 186 9030 |
OTC Markets | |
Jonathan Dickson | +44 204 526 4581 +44 7731 815 896 |
Tancredi Intelligent Communication UK & Europe Media Relations | |
Emma Valgimigli Emma Hodges Salamander Davoudi Fabio Galloni-Roversi Monaco | +44 7727 180 873 +44 7861 995 628 +44 7957 549 906 +44 7888 672 701 |
About Argo:
Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB and on the Nasdaq Global Select Market in the United States under the ticker: ARBK.
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
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FAQ
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