Argo Q3 Revenue Clouded by Net Loss, Despite Cost Cuts
In the
latest financial report, Argo Blockchain plc (LSE: ARGO), a publicly-listed cryptocurrency
mining company, detailed a period of mixed financial results for Q3 2023. The
company implemented strategic measures that led to improved operational
efficiency and cost reductions despite enduring a net loss over the same
period.
Argo
Blockchain capitalized on economic curtailment strategies at its Helios
facility to accrue $4.4 million in power credits against high electricity
prices, contributing to a mining margin increase to 58% in Q3 from 36% in Q2
2023.
Moreover,
the company reduced the average direct cost per Bitcoin (BTC) mined
by 33%, from $17,566 to $11,736. The firm also reported an 11% reduction in
recurring non-mining operating expenses and a positive Adjusted EBITDA of $3.1
million for the quarter, with a nine-month tally of $5.4 million.
🚨Argo’s Q3 2023 results are out!🚨
Highlights:
🔸$4.4m in power credits from curtailment in TX
🔸Grew Adj. EBITDA by 185% to $3.1m
🔸58% mining margin
🔸Reduced debt by $5m
🔸Increased total hashrate capacity by 12% to 2.8 EH/sFull RNS: https://t.co/sPpRBKozIZ#ARB $ARBK
— Argo (@ArgoBlockchain) November 14, 2023
“I am
pleased with Argo’s operating and financial performance during the third
quarter,” Seif El-Bakly, the interim Chief Executive Officer at Argo, said.
“The ability of our mining machines to curtail operations at Helios during
periods of high electricity prices allowed us to generate significant power
credits.”
Operationally,
the completion of BlockMiner machine deployment was a highlight, enhancing the
company’s total hash rate capacity to 2.8 EH/s. Revenue from mining 370 BTC and
BTC Equivalents amounted to $10.4 million. Argo made strides in debt management
by reducing its Galaxy Digital debt from $32 million to $27 million, finishing
the quarter with $70 million in total debt.
Argo’s Financial Obstacles
Despite
these operational successes, Argo Blockchain faced financial challenges, marked
by a net loss of $9.9 million for the quarter. The company incurred a one-time
non-cash charge of $1.2 million due to a reevaluation of prior period sales
taxes under new Canadian regulations. Argo held $8.0 million in cash at the
quarter’s close and 32 BTC on its balance sheet.
Excluding
the power credits, which accounted for nearly half of the company’s revenues,
the latest income would turn out to be worse than in the second quarter. In
terms of the first nine months of 2023, they also fare worse than in the same
period last year. Year to date, the income amounted to $34,403, while in 2022
it was $47,741.
The results
are consistent with those reported for the first half of 2023 when Argo also
mined more but earned less, with a net loss for the six-month period amounting
to $18.8 million.
In the
latest financial report, Argo Blockchain plc (LSE: ARGO), a publicly-listed cryptocurrency
mining company, detailed a period of mixed financial results for Q3 2023. The
company implemented strategic measures that led to improved operational
efficiency and cost reductions despite enduring a net loss over the same
period.
Argo
Blockchain capitalized on economic curtailment strategies at its Helios
facility to accrue $4.4 million in power credits against high electricity
prices, contributing to a mining margin increase to 58% in Q3 from 36% in Q2
2023.
Moreover,
the company reduced the average direct cost per Bitcoin (BTC) mined
by 33%, from $17,566 to $11,736. The firm also reported an 11% reduction in
recurring non-mining operating expenses and a positive Adjusted EBITDA of $3.1
million for the quarter, with a nine-month tally of $5.4 million.
🚨Argo’s Q3 2023 results are out!🚨
Highlights:
🔸$4.4m in power credits from curtailment in TX
🔸Grew Adj. EBITDA by 185% to $3.1m
🔸58% mining margin
🔸Reduced debt by $5m
🔸Increased total hashrate capacity by 12% to 2.8 EH/sFull RNS: https://t.co/sPpRBKozIZ#ARB $ARBK
— Argo (@ArgoBlockchain) November 14, 2023
“I am
pleased with Argo’s operating and financial performance during the third
quarter,” Seif El-Bakly, the interim Chief Executive Officer at Argo, said.
“The ability of our mining machines to curtail operations at Helios during
periods of high electricity prices allowed us to generate significant power
credits.”
Operationally,
the completion of BlockMiner machine deployment was a highlight, enhancing the
company’s total hash rate capacity to 2.8 EH/s. Revenue from mining 370 BTC and
BTC Equivalents amounted to $10.4 million. Argo made strides in debt management
by reducing its Galaxy Digital debt from $32 million to $27 million, finishing
the quarter with $70 million in total debt.
Argo’s Financial Obstacles
Despite
these operational successes, Argo Blockchain faced financial challenges, marked
by a net loss of $9.9 million for the quarter. The company incurred a one-time
non-cash charge of $1.2 million due to a reevaluation of prior period sales
taxes under new Canadian regulations. Argo held $8.0 million in cash at the
quarter’s close and 32 BTC on its balance sheet.
Excluding
the power credits, which accounted for nearly half of the company’s revenues,
the latest income would turn out to be worse than in the second quarter. In
terms of the first nine months of 2023, they also fare worse than in the same
period last year. Year to date, the income amounted to $34,403, while in 2022
it was $47,741.
The results
are consistent with those reported for the first half of 2023 when Argo also
mined more but earned less, with a net loss for the six-month period amounting
to $18.8 million.