RNS Number : 6712K
Argo Blockchain PLC
09 May 2022
09 May 2022
Argo Blockchain plc, a global leader in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK),is pleased to provide the following operational update for April 2022.
During the month of April, Argo mined 166 Bitcoin or Bitcoin Equivalent (together,BTC) compared to 163 BTC in March 2022.
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in April amounted to £5.52 million [$6.83 million*](March 2022: £5.22 million [$6.92 million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 75% for the month of April (March 2022: 74%).
At the end of April, the Company owned 2,682 Bitcoin,of which 235 were BTC equivalents.
The Company is also pleased to announce the promotion of Justin Nolan to the role of Chief Growth Oﬀicer. Justin Nolan was previously the co-founder and Chief Executive of DPN LLC, which initially developed the Helios project and was acquired by the Company in March 2021. After the acquisition, Mr. Nolan joined Argo as Vice President of Business Development, where he has been focused on the build out at Helios and on leading the Company's debt ﬁnancing eﬀorts. As Chief Growth Oﬀicer, he will continue to focus on long-term growth opportunities for Argo.
Peter Wall, Chief Executive of Argo, said: "Following our stellar 2021 results, this month shows we are on course to strengthen our track record for the year ahead. Justin Nolan has played an integral role in making the opening of our Helios facility in less than a year possible. His promotion to Chief Growth Oﬀicer coupled with the facility's fast turnaround highlights our ambition to significantly improve our scale of operations and further our reputation as an industry leader."
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 March 2022 and April 2022.
(1) Due to unfavourable changes in the fair value of Bitcoin and Bitcoin Equivalents in March 2022 and April 2022 there was a loss on change in fair value of digital currencies.
* 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.
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.
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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 https://argoblockchain.com.
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