Argo Blockchain PLC Announces October Operational Update
Argo Blockchain reported a decrease in Bitcoin mining, with 204 BTC mined in October compared to 215 BTC in September due to increased network difficulty. Mining revenue fell to £3.55 million ($4 million) from £3.78 million ($4.27 million) in the previous month. However, the Bitcoin mining margin improved to 32%. The company repaid $6.7 million under a BTC-backed loan, reducing exposure to BTC price risks. Argo reassured investors about its electricity supply from Hydro-Québec amid media uncertainties and continues financing discussions.
- Mining margin improved to 32% in October from 25% in September.
- Successfully repaid $6.7 million under BTC-backed loan, reducing financial risks.
- BTC mined decreased to 204 in October from 215 in September due to increased network difficulty.
- Mining revenue declined to £3.55 million ($4.00 million) from £3.78 million ($4.27 million) in September.
October 2022 Operational Update
LONDON, UK / ACCESSWIRE / November 8, 2022 / Argo Blockchain plc, a global leader in cryptocurrency mining ("Argo" or "the Company") (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for October 2022.
During the month of October, Argo mined 204 Bitcoin or Bitcoin Equivalents (together, BTC) compared to 215 BTC in September 2022. The decrease in BTC mined was primarily due to a significant increase in the Bitcoin network difficulty in October compared to September.
As previously announced, the Company sold 3,843 new-in-box Bitmain S19J Pro machines which represented the last batch of the original Bitmain order scheduled for installation in October 2022. Consequently, the Company's total hashrate capacity continues to be 2.5 EH/s.
As of 31 October 2022, the Company held 138 Bitcoin, of which 119 were BTC Equivalents.
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in October amounted to £3.55 million [
Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of
Additionally, the Company repaid the
The Company also wishes to respond to media reports falsely claiming that Hydro-Québec, the public utility for power in Quebec, has proposed to stop providing electricity to existing mining operations. The Company has spoken with representatives from Hydro-Québec and the City of Baie-Comeau, and is confident that its current access to power at its two Quebec facilities will continue for the foreseeable future.
Argo is continuing to engage in financing discussions, as announced on 31 October 2022, and will update investors in due course.
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 realised 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 September 2022 and October 2022.
| Month Ended 30 September 2022 | Month Ended 31 October 2022 | |||
| £(000s) | £(000s) | |||
Gross profit/(loss) | (5,807) | (6,560) | (1,486) | (1,673) |
Gross Margin | ( | ( | ( | ( |
Non mining revenue | - | - | (41) | (47) |
Depreciation of mining equipment | 1,723 | 1,947 | 1,934 | 2,177 |
Change in fair value of digital currencies(1) | 4,967 | 5,611 | 658 | 741 |
Realised (profit)/loss on sale of digital currencies | 55 | 62 | 64 | 72 |
Mining Profit | 938 | 1,060 | 1,129 | 1,271 |
Bitcoin and Bitcoin Equivalent Mining Margin | ||||
(1) Due to unfavourable changes in the fair value of BTC there was a loss on the change in fair value of digital currencies in September 2022 and October 2022.
* 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
Inside Information and Forward-Looking Statements
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 Seamus Fricker 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 Fabio Galloni-Roversi Monaco Nasser Al-Sayed | +44 7727 180 873 +44 7888 672 701 +44 7915 033 739 |
About Argo:
Argo Blockchain plc is a dual-listed (LSE:ARB; NASDAQ:ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With its flagship mining facility 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. Argo also participates in several Web 3.0, DeFi and GameFi projects through its Argo Labs division, further contributing to its business operations, as well as the development of the cryptocurrency markets. For more information, visit www.argoblockchain.com.
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SOURCE: Argo Blockchain PLC
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FAQ
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