Argo Blockchain PLC Announces June 2022 Operational Update

LONDON, UK / ACCESSWIRE / 7 July 2022 / Argo Blockchain plc, a global leader in cryptocurrency mining, (LSE: ARB) (NASDAQ: ARBK)would like to provide the following operational update for June 2022.

During the month of June, Argo mined 179 Bitcoin or Bitcoin Equivalent (collectively, BTC) compared to 124 BTC in May 2022. The increase in BTC mined was mainly due to the increase in total hashrate capacity and active time at the Helios facility compared to the previous month.

Based on daily foreign exchange rates and the price of digital currency during the month, mining revenue in June was around £ 3.38 million. [$4.35 million*] (May 2022: £ 3.07 million [$3.89 million*]).

Argo generated this revenue with a Bitcoin and Bitcoin Equivalent Mining Margin of 50% for the month of June (May 2022: 55%)¹. This reduction in mining margins was driven primarily by the reduced price of Bitcoin and higher electricity costs at Helios.

As of June 30, 2022, the Company held 1,953 Bitcoins, of which 210 are equivalent to BTC.

(1) Bitcoin and Bitcoin Equivalent Mining Margin for May 2022 previously reported 62%; However, a specific fee invoice for Helios has not been received and is not included in the previous calculation.

Financing Update

During the month of June, the Company sold 637 Bitcoins with an average price of approximately $ 24,500. The proceeds are used to fund operating costs and growth capital, as well as to reduce liabilities under the BTC -backed loan agreement with Galaxy Digital. This is in line with the Company’s risk management strategy that has been in place since January 2022. During 2022, the Company has sold a significant portion of its monthly Bitcoin production, continuously reducing its exposure to BTC-backed loans, and strengthening its balance sheet. sheet. As of June 30, 2022, the Company has an outstanding balance of $ 22 million under BTC -backed loans. The company is confident that it has enough liquidity to avoid potential liquidation of its BTC -backed loans if the Bitcoin price continues to fall.

The story continues

Since Q4 2021, the Company has been using derivatives to limit downward risk. Furthermore, in June 2022, the Company hired full-time derivatives traders to enhance its internal capabilities in risk management and treasury.

Update Helios

During the month of June, the delivery and installation of the Company’s S19J Pro machines ordered from Bitmain continued in accordance with the schedule set for September 2021. As of June 30, 2022, the Company had paid more than 95% of the total purchase. the price for the Bitmain machine, which includes discounts received as a result of a decrease in the Bitcoin price. During the month of June, the Company increased its total hashrate capacity to 2.2 EH/s. The company remains on track to install all 20,000 machines purchased from Bitmain by October 2022.

In addition, the Company continues to enter into a machine exchange agreement with Core Scientific. As of June 30, 2022, 5,000 S19J Pro machines have been shipped and installed under this agreement.

“Continued efforts to expand Argo’s mining operations are significantly reflected in this month’s volume and increased hashrate,” said Peter Wall, CEO of Argo. “These numbers, along with the continuous installation of the S19J Pro engine, put us in a solid position regarding mining capacity.

“We have seen positive results from risk management strategies that have reduced the Company’s exposure to BTC-backed debt, and we have hired full-time derivatives traders. And further improved our efficiency.”

Non-IFRS Measurements

Bitcoin and Bitcoin Equivalent Mining Margin are financial measures not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin have limitations as analytical tools. In particular, Bitcoin and Bitcoin Equivalent Mining Margin do not include depreciation of mining equipment and do not reflect the full cost of our mining operations, nor do they include the effects of fluctuations in the value of digital currencies and actual losses from digital sales. assets, which affects our IFRS gross profits. This measure should not be considered as an alternative to gross margin determined under IFRS, or any other IFRS measure. These measures should not be compared with similar measures used by other companies. As a result, you should not consider this step in isolation from, or as a substitute analysis for, our gross profits as determined under IFRS.

The table below shows the gross margin reconciliation to Bitcoin and Bitcoin Equivalent Mining Margin, the most directly compared IFRS measure, for the months of May 2022 and June 2022.

(1) A specific fee invoice for Helios has not been received and cannot be included in previous calculations for: Gross (loss) (Previously reported in May 2022 to be £ 11,719,569 / $ 14,650,191), Gross Margin (Previously reported in May 2022 to be 377%), Mining Profit (Previously reported in May 2022 to be £ 1,926,383 / $ 2,408,099) and Bitcoin and Bitcoin Equivalent Mining Margin (Previously reported in May 2022 to be 62%).

(2) Due to unfavorable changes in the fair value of Bitcoin and Bitcoin Equivalents in May 2022 and June 2022, there is a loss of changes in the fair value of digital currencies.

* The dollar value is translated from the pound sterling to the U.S. dollar using the noon purchase rate of the Federal Reserve Bank of New York on the effective date

Inside Information and Forward-Looking Statements

This announcement contains internal information and includes forward statements that reflect the current views, interpretations, interpretations, beliefs or expectations of the Board of Directors regarding financial performance, business strategy and management plans and objectives for future operations. . The statement includes a statement of expectations about the Company and the sectors and industries in which the Company operates. Statements that include the words “hope”, “intention”, “plan”, “believe”, “project”, “hope”, “will”, “target”, “aim”, “can”, “will “,” can “,” continue “,” estimate “,” future “,” opportunity “,” potential “or, in each case, negatives, and similar statements of future or home-looking nature identify home-looking statements. All of the claims are hoped to address issues that are risky and uncertain because they are related to events that may not occur in the future. A statement of hope does not guarantee future performance. Hence, there are or will be significant factors that could cause the actual results, prospects and performance of the Company to differ materially from those indicated in the statement. In addition, even if the Company’s actual results, prospects and performance are consistent with the forward claims contained in this document, those results may not reflect results in subsequent periods. This statement of hope only speaks volumes about the date of this announcement. Subject to any obligations under the Prospectus Rules, the Market Abuse Rules, 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 laws and regulations, the Company does nothing. public obligation to update or review any forward -looking statement, whether as a result of new information, future developments or otherwise. For a more detailed discussion of the factors that may cause our actual results to differ from those described in this announcement, see the Company’s submissions from time to time with the United States Securities and Exchange Commission and the UK Financial Conduct Authority, including section titled “Risk Factors” in the Company Registration Statement on Form F-1.

For more information contact:

About Argo

Argo Blockchain plc is a dual-listed blockchain technology company (LSE: ARB; NASDAQ: ARBK) focused on large-scale cryptocurrency mining. With state -of -the -art mining facilities in Texas, and offices in the U.S., Canada, and the United Kingdom, Argo’s global sustainable operations are generally supported by renewable energy. In 2021, Argo will be the first climate -positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. Argo is also involved in a number of Web 3.0, DeFi and GameFi projects through its Argo Labs division, further contributing to business operations, as well as the development of the cryptocurrency market. For more information, go to www.argoblockchain.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For more information, contact rns@lseg.com or visit www.rns.com.

SOURCE: Argo Blockchain PLC

View the source version at accesswire.com:
https://www.accesswire.com/707783/Argo-Blockchain-PLC-Announces-June-2022-Operational-Update