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The
publicly-listed Bitcoin (BTC) miner from Wall Street (NASDAQ: ARBK) and London
Stock Exchange (LSE: ARB), Argo Blockchain, announced today (Wednesday) its
interim results for the first half of 2024. The company reported an 18%
increase in revenue to $29.3 million compared to the same period last year, achieving
growth despite the Bitcoin halving event and a significant decrease in the
number of Bitcoin mined.
The
London-based firm mined 507 Bitcoin during the first six months of 2024, a 46%
decrease from the 947 Bitcoin mined in the first half of 2023. This reduction
was primarily attributed to
the increase in global hashrate and the decline in Bitcoin-denominated hash
price.
Thomas Chippas, Argo. Source: LinkedIn
“Argo’s
focus on financial discipline and operational efficiency enabled us to pay off
our $35 million debt obligation to Galaxy, significantly deleveraging our
balance sheet,” Thomas Chippas, CEO of Argo Blockchain , commented on the
results. “This positions us well to explore investing in growth and strategic
initiatives that can drive long-term value for our shareholders.”
Argo’s
mining margin stood at $11.5 million, or 39%, for the first half of 2024,
compared to $10.2 million, or 42%, for the same period in 2023. The company
reported a net loss of $32.7 million, widening from an $18.6 million loss in
the first half of the previous year. However, adjusted EBITDA improved to $5.7
million from $2.8 million year-over-year.
The
deepened loss is, however, the effect of a recent moves to strengthen company’s
balance sheet. Argo reduced its loan from Galaxy Digital from $23.5 million at
the beginning of the year to $5.3 million by June 30, 2024. The company
subsequently announced that it had fully
repaid the Galaxy loan in August.
Not only
Argo, but other publicly listed miners are also experiencing
a “halving hangover.” According to the latest report from VanEck,
cryptocurrency miners’ revenues have declined by another 12%, marking another
consecutive month of negative response to the reduced rewards for mined BTC blocks.
Argo’s interim results for 2024 are out!
Highlights:
🔶Generated revenues of $29.3 million for H1 2024 compared to $24.0 million for H1 2023, an 18% increase
🔶 Mining margin of $11.5 million or 39% for H1 2024
🔶 Fully repaid the Galaxy loan in August 2024
🔶Ended the…— Argo (@ArgoBlockchain) August 28, 2024
What Else Does the Report
Reveal?
The company
also reported several strategic moves during the period, including raising $9.9
million through a share issuance in January and selling
its five-megawatt data center in Mirabel, Quebec, for $6.1 million in
March. Argo expects the consolidation of its operations to reduce non-mining
operating expenses by $0.7 million annually.
Despite
these positive developments, Argo recorded a $22 million impairment on its
mining machines, reflecting current challenging market conditions in the
cryptocurrency mining sector.
As of June
30, 2024, Argo held $4.0 million in cash and 11 Bitcoin equivalent. The company
further bolstered its financial position by
raising an additional $8.3 million through a private share placement with
an institutional investor in July.
The
publicly-listed Bitcoin (BTC) miner from Wall Street (NASDAQ: ARBK) and London
Stock Exchange (LSE: ARB), Argo Blockchain, announced today (Wednesday) its
interim results for the first half of 2024. The company reported an 18%
increase in revenue to $29.3 million compared to the same period last year, achieving
growth despite the Bitcoin halving event and a significant decrease in the
number of Bitcoin mined.
The
London-based firm mined 507 Bitcoin during the first six months of 2024, a 46%
decrease from the 947 Bitcoin mined in the first half of 2023. This reduction
was primarily attributed to
the increase in global hashrate and the decline in Bitcoin-denominated hash
price.
Thomas Chippas, Argo. Source: LinkedIn
“Argo’s
focus on financial discipline and operational efficiency enabled us to pay off
our $35 million debt obligation to Galaxy, significantly deleveraging our
balance sheet,” Thomas Chippas, CEO of Argo Blockchain , commented on the
results. “This positions us well to explore investing in growth and strategic
initiatives that can drive long-term value for our shareholders.”
Argo’s
mining margin stood at $11.5 million, or 39%, for the first half of 2024,
compared to $10.2 million, or 42%, for the same period in 2023. The company
reported a net loss of $32.7 million, widening from an $18.6 million loss in
the first half of the previous year. However, adjusted EBITDA improved to $5.7
million from $2.8 million year-over-year.
The
deepened loss is, however, the effect of a recent moves to strengthen company’s
balance sheet. Argo reduced its loan from Galaxy Digital from $23.5 million at
the beginning of the year to $5.3 million by June 30, 2024. The company
subsequently announced that it had fully
repaid the Galaxy loan in August.
Not only
Argo, but other publicly listed miners are also experiencing
a “halving hangover.” According to the latest report from VanEck,
cryptocurrency miners’ revenues have declined by another 12%, marking another
consecutive month of negative response to the reduced rewards for mined BTC blocks.
Argo’s interim results for 2024 are out!
Highlights:
🔶Generated revenues of $29.3 million for H1 2024 compared to $24.0 million for H1 2023, an 18% increase
🔶 Mining margin of $11.5 million or 39% for H1 2024
🔶 Fully repaid the Galaxy loan in August 2024
🔶Ended the…— Argo (@ArgoBlockchain) August 28, 2024
What Else Does the Report
Reveal?
The company
also reported several strategic moves during the period, including raising $9.9
million through a share issuance in January and selling
its five-megawatt data center in Mirabel, Quebec, for $6.1 million in
March. Argo expects the consolidation of its operations to reduce non-mining
operating expenses by $0.7 million annually.
Despite
these positive developments, Argo recorded a $22 million impairment on its
mining machines, reflecting current challenging market conditions in the
cryptocurrency mining sector.
As of June
30, 2024, Argo held $4.0 million in cash and 11 Bitcoin equivalent. The company
further bolstered its financial position by
raising an additional $8.3 million through a private share placement with
an institutional investor in July.
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