The recent
Argo Blockchain financial report presents a mixed bag, with the company making
strides in reducing operational costs and debt, but also facing a decline in
revenue and a net loss. The publicly-listed firm’s results for the first half
of 2023 show what problems the mining industry centered around Bitcoin (BTC)
and other cryptocurrencies is currently facing.
Argo
Blockchain managed to cut its non-mining operational costs by 21% in the second
quarter of 2023, compared to the previous quarter. This led to a positive
Adjusted EBITDA of $1 million for Q2 and $2.3 million for H1 2023. Additionally,
the company reduced its debt by $4 million during the quarter, bringing it down
to $75 million as of 30 June. It marked a significant drop from $143 million a
year ago.
However,
this does not change the fact that adjusted EBITDA in the same period a year
earlier was much higher at nearly $18 million.
Source: Argo Blockchain
Mining, Revenues and Net
Loss
The company
mined 947 Bitcoin and Bitcoin Equivalent (BTC) during the first half of 2023,
marking an increase of 1% over the same period last year.
“During
H1 2023, the Company achieved a mining margin of 42%, which is an increase from
the mining margin in H2 2022 of 33%,” the company commented in the
official statement.
However,
this achievement was overshadowed by a revenue decrease of 31%, totaling $24
million for H1 2023. The decline was primarily due to a drop in Bitcoin prices
and an increase in global hashrate, which made mining more competitive. In H1
2022, revenues ranked at $34.6 million.
New RNS: Argo has released its H1 2023 financials and Q2 2023 update:
🔸Mined 947 BTC w/ $24m of rev in H1’23
🔸Cut expenses by 21% in Q2’23 vs prior quarter
🔸Ended June with $9m cash & 46 BTC
🔸Mining margin of 42% for H1’23Full results: https://t.co/4NhsOaW3Jt#ARB $ARBK
— Argo (@ArgoBlockchain) August 29, 2023
Despite the
positive cost and debt reduction strides, Argo Blockchain reported a net loss
of $18.8 million for H1 2023. Although it is an improvement over the $39.6
million net loss reported in H1 2022, it clearly shows the difficult situation
facing the mining industry.
The company
ended June with $9.1 million in cash and 46 BTC in its balance sheet. It raised
an additional $7.5 million in July through a share placement.
Argo Saved by Mike Novogratz
In a move
that quashed rumors of impending bankruptcy , the company, listed on the London
and New York stock exchanges, entered into a pivotal agreement with Galaxy
Digital Holdings, Ltd. The latter is a financial institution specializing in
digital assets and is helmed by Mike Novogratz. As part of the deal, Argo
Blockchain offloaded its Texas-based Helios cryptocurrency mine for a sum of
$65 million. Galaxy Digital also restructured the loans Argo had previously
secured to fund its ongoing operations.
Several
months after the Galaxy deal, Argo Blockchain announced the appointment of Jim
MacCallum as its new Chief Financial Officer. Alongside this leadership change,
the company disclosed its latest operational metrics, which indicated a decline
in mining output relative to the previous month. According to the company’s
July 2023 report, there was a noticeable decrease in both monthly Bitcoin
production and revenue. In June 2023, the company mined an average of 4.6
Bitcoin per day, marking a 17% drop from the 5.6 Bitcoin mined daily in May
2023.
As you can
see from the chart above, the year 2022 proved to be a difficult period for
Bitcoin miners, following a highly profitable 2021. The decline in
earnings—amounting to a staggering $6 billion—was primarily attributed to the
increasing complexity of the mining process.
The recent
Argo Blockchain financial report presents a mixed bag, with the company making
strides in reducing operational costs and debt, but also facing a decline in
revenue and a net loss. The publicly-listed firm’s results for the first half
of 2023 show what problems the mining industry centered around Bitcoin (BTC)
and other cryptocurrencies is currently facing.
Argo
Blockchain managed to cut its non-mining operational costs by 21% in the second
quarter of 2023, compared to the previous quarter. This led to a positive
Adjusted EBITDA of $1 million for Q2 and $2.3 million for H1 2023. Additionally,
the company reduced its debt by $4 million during the quarter, bringing it down
to $75 million as of 30 June. It marked a significant drop from $143 million a
year ago.
However,
this does not change the fact that adjusted EBITDA in the same period a year
earlier was much higher at nearly $18 million.
Source: Argo Blockchain
Mining, Revenues and Net
Loss
The company
mined 947 Bitcoin and Bitcoin Equivalent (BTC) during the first half of 2023,
marking an increase of 1% over the same period last year.
“During
H1 2023, the Company achieved a mining margin of 42%, which is an increase from
the mining margin in H2 2022 of 33%,” the company commented in the
official statement.
However,
this achievement was overshadowed by a revenue decrease of 31%, totaling $24
million for H1 2023. The decline was primarily due to a drop in Bitcoin prices
and an increase in global hashrate, which made mining more competitive. In H1
2022, revenues ranked at $34.6 million.
New RNS: Argo has released its H1 2023 financials and Q2 2023 update:
🔸Mined 947 BTC w/ $24m of rev in H1’23
🔸Cut expenses by 21% in Q2’23 vs prior quarter
🔸Ended June with $9m cash & 46 BTC
🔸Mining margin of 42% for H1’23Full results: https://t.co/4NhsOaW3Jt#ARB $ARBK
— Argo (@ArgoBlockchain) August 29, 2023
Despite the
positive cost and debt reduction strides, Argo Blockchain reported a net loss
of $18.8 million for H1 2023. Although it is an improvement over the $39.6
million net loss reported in H1 2022, it clearly shows the difficult situation
facing the mining industry.
The company
ended June with $9.1 million in cash and 46 BTC in its balance sheet. It raised
an additional $7.5 million in July through a share placement.
Argo Saved by Mike Novogratz
In a move
that quashed rumors of impending bankruptcy , the company, listed on the London
and New York stock exchanges, entered into a pivotal agreement with Galaxy
Digital Holdings, Ltd. The latter is a financial institution specializing in
digital assets and is helmed by Mike Novogratz. As part of the deal, Argo
Blockchain offloaded its Texas-based Helios cryptocurrency mine for a sum of
$65 million. Galaxy Digital also restructured the loans Argo had previously
secured to fund its ongoing operations.
Several
months after the Galaxy deal, Argo Blockchain announced the appointment of Jim
MacCallum as its new Chief Financial Officer. Alongside this leadership change,
the company disclosed its latest operational metrics, which indicated a decline
in mining output relative to the previous month. According to the company’s
July 2023 report, there was a noticeable decrease in both monthly Bitcoin
production and revenue. In June 2023, the company mined an average of 4.6
Bitcoin per day, marking a 17% drop from the 5.6 Bitcoin mined daily in May
2023.
As you can
see from the chart above, the year 2022 proved to be a difficult period for
Bitcoin miners, following a highly profitable 2021. The decline in
earnings—amounting to a staggering $6 billion—was primarily attributed to the
increasing complexity of the mining process.
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- Source: https://www.financemagnates.com//cryptocurrency/argo-blockchain-mines-more-but-earns-less-in-h1-2023-reports-188m-net-loss/
