Q1 2023 Unaudited Results

2023 June | Q1 2023 Unaudited Results

Press Release
06 June 2023

Argo Blockchain plc

("Argo" or "the Company")

Q1 2023 Results (Unaudited)

Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK), a global leader in cryptocurrency mining, is pleased to announce its unaudited financial results for the quarter ended 31 March 2023. All $ amounts are in United States Dollars ("USD") unless otherwise stated.

Q1 2023 Financial Results

  • The Company ended the quarter with $14.2 million of cash on its balance sheet, along with 85 Bitcoin or Bitcoin Equivalent (together, “BTC”) in its HODL
  • Revenue of $11.4 million, an increase of 15% compared to Q4 2022
  • Net loss of $8.7 million
  • Adjusted EBITDA of $1.6 million
  • Total BTC mined in the quarter was 491, or 5.3 BTC per day
  • Mining margin percentage for the quarter was 49%, an increase from a 35% mining margin percentage in Q4 2022
  • Reduced operating costs and expenses by 70% compared to the quarterly average in the second half of 2022
  • Reduced finance costs by 63% compared to the quarterly average in the second half of 2022

Management Commentary

Seif El-Bakly, Interim Chief Executive Officer of Argo, said: “The Argo team is moving ahead with a focus on financial discipline, operational excellence, and growth and strategic partnerships. To support these initiatives, we recently strengthened our finance team and appointed Jim MacCallum, CPA, CFA as Chief Financial Officer.”

“In terms of financial discipline, we are taking a much more critical view of all operating expenses, and we’ve implemented a robust internal process aimed at reducing non-mining operating expenses. Compared to 2022, we’ve reduced our expenses by 70%. We are also evaluating options to strengthen our balance sheet.”

During the first quarter, Argo successfully transitioned the Helios facility to Galaxy Digital.  In addition, the average all-in price of power and hosting was lower than the previous guidance of $0.05 – $0.055 per kilowatt-hour for the quarter.

Moving forward, Argo expects to receive and install “BlockMiner” machines later this year at its Quebec facilities. This is expected to increase the Company’s total hashrate to approximately 2.8 EH/s.

Earnings Conference Call

Argo will host a conference call to discuss its results at 10:00 ET / 15:00 BST today, Tuesday 6 June 2023. The live webcast of the call can be accessed via the Investor Meet Company platform.

Investors can sign up to Investor Meet Company and add Argo Blockchain via the following link: https://www.investormeetcompany.com/argo-blockchain-plc/register-investor

Investors already following Argo Blockchain on the Investor Meet Company platform will be invited automatically.

Inside Information and Forward-Looking Statements

This announcement contains inside information and includes forward-looking statements which reflect the Company's 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 "remains confident", "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, including the risk that the Company may receive the benefits contemplated by its transactions with Galaxy, the Company may be unable to secure sufficient additional financing to meet its operating needs, and the Company may not generate sufficient working capital to fund its operations for the next twelve months as contemplated. 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 Annual Report on Form 20-F.

Non-IFRS Measures

Bitcoin and Bitcoin Equivalent Mining Margin and Adjusted EBITDA are financial measures not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin and Adjusted EBITDA have limitations as analytical tools. 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. Further, Adjusted EBITDA removes such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs that are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events. These measures should not be considered as an alternative to gross margin or net income/(loss), as applicable, determined in accordance with IFRS, or other IFRS measures. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider these measures in isolation from, or as a substitute analysis for, our gross margin or net income/(loss), as applicable, as determined in accordance with IFRS.

The income statement has been prepared on the basis that all operations are continuing operations.


As at


For the three months ended 31 March

The table below reconciles Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure, for the three months ended 31 March 2023 and three months ended 31 March 2022.

For further information please contact:

Argo Blockchain  
Investor Relations ir@argoblockchain.com 
finnCap Ltd  
Corporate Finance
Jonny Franklin-Adams
Seamus Fricker
Joint Corporate Broker
Sunila de Silva
 +44 207 220 0500
Tennyson Securities  
Joint Corporate Brokers
Peter Krens
+44 207 186 9030
Tancredi Intelligent Communications
UK & Europe Media Relations

Salamander Davoudi
Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed

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 https://argoblockchain.com.