British mining company Argo Blockchain posted a net loss of £194.2m ($240.2m) in 2022.
New RNS: FY 2022 Results. highlights include:
Revenue of £47mm ($59mm)
Mining margin of 54%
Mined 2,156 BTC and BTC Equiv
Completed strategic sale of Helios
Reduced debt by £33mm ($41mm)
— Argo (@ArgoBlockchain) April 28, 2023
The negative financial result is mainly due to the revaluation of cryptocurrency reserves and the sale of assets.
The firm’s revenue for the period was £47.4m ($58.6m), down 36% from 2021. The fall in Argo was explained primarily by the decline in the price of bitcoin and the growth of the global hashrate with the complexity of mining.
In 2022, the profitability of cryptocurrency mining was 54% against 84% a year earlier.
During the period, the company mined 2156 BTC, increasing production by 5%. As of December 31, Argo’s cryptocurrency reserves in terms of bitcoin reached 141 BTC.
Over the year, the company increased the hashrate from 1.6 EH / s to 2.5 EH / s. The company expects to receive 2870 BlockMiner ASIC miners based on Blockscale chips from Intel under an agreement with ePIC Blockchain Technologies. Devices are planned to be deployed in the III quarter.
In April, the American corporation announced the termination of support for the line of chips for mining. Argo, along with GRIID Infrastructure and HIVE Blockchain, was among the first buyers of the product from Intel.
In October 2022, the company failed to complete a deal to raise £24m in equity. In December, there were rumors about the possible bankruptcy of Argo.
On December 28, the firm announced strategic deals with Galaxy Digital. As a result of the agreements reached, Argo sold the flagship data center in Texas to Mike Novogratz’s holding for $65 million. This made it possible to refinance loans secured by equipment. A fleet of 23,619 Antminer S19J Pro miners remained to work at the facility on a hosting basis.
According to the announcement, the company will focus on developing its two mining operations in Quebec in the coming months. It is there that devices expected from ePIC with a hash rate of approximately 300 PH / s will be installed.
In the first quarter of 2023, Argo mined 491 BTC, generating £9 million ($11 million) in revenue on a 45-50% margin. The cost of mining 1 BTC was approximately £10,000 ($12,000).
Since the beginning of the year, CFO Alex Appleton (replaced by Jim McCallum) and CEO Peter Wall have left their posts at the firm. The Board of Directors appointed Seif El-Bakli as Interim CEO.
Recall that in January, Argo avoided delisting on the Nasdaq, where it has been trading since 2021.
That same month, the company faced a class-action lawsuit filed by its shareholders.
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