Argo Blockchain PLC on Wednesday reported mixed interim financial results with revenue growth outweighed by impairment charges and debt repayment.
The London-based cryptocurrency miner with operations in North America said pretax loss widened to $32.4 million in the first half that ended June 30 from $18.6 million in the previous year.
Revenue increased 22% to $29.3 million from $24.0 million, while power and hosting costs grew 27% to $19.2 million from $15.1 million.
Operating costs and expenses, however, were reduced by 26% to $5.8 million from $7.9 million.
The company also recorded a $22.0 million impairment on its mining machines.
Chief Executive Officer Thomas Chippas commented: ‘Argo’s focus on financial discipline and operational efficiency enabled us to pay off our $35 million debt obligation to Galaxy [Power LLC], significantly deleveraging our balance sheet. This positions us well to explore investing in growth and strategic initiatives that can drive long-term value for our shareholders.’
The total number of bitcoin mined during the half fell 46% to 507 from 947 due to an increase in the global hashrate.
‘Despite the bitcoin halving and the lower hash price realised since then, the company has maintained strong mining margins and its mining margin percentage has remained consistent with the first half of 2023. Lower mining margin and a lower mining margin percentage are expected for the second half of 2024 as bitcoin economics have deteriorated since the Bitcoin halving in April 2024,’ Argo said.
In March, the company closed the sale of its five megawatt data centre located in Mirabel, Quebec for a $6.1 million consideration and subsequently relocated the mining fleet to its facility in Baie Comeau, Quebec.
This consolidation is expected to reduce non-mining operating expenses by £700,000 per year.
Furthermore, Argo raised $8.3 million in July from the issuance of 57.8 million shares and 57.8 million warrants through a private share placement with an institutional investor. The shares were issued at £0.1125 and the warrants have an exercise price of £0.1125.
Argo Blockchain shares were down 4.2% at 9.82 pence each in London on Wednesday morning.
‘The company continues to explore opportunities where mining can be paired with stranded or wasted energy. There is tremendous potential for energy generators to utilise mining as a balancing and optimization tool, particularly in the energy transition where limitations currently exist in the ability to store renewable energy. Argo is evaluating several projects with companies across the energy value chain,’ Argo added.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
