Argo Blockchain PLC September Operational Update (2860O)
October 07 2021 - 2:00AM
UK Regulatory
TIDMARB
RNS Number : 2860O
Argo Blockchain PLC
07 October 2021
Press Release
07 October 2021
Argo Blockchain PLC
("Argo" or the "Company")
September Operational Update
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining
(LSE: ARB; NASDAQ: ARBK), is pleased to provide the following
operational update for September.
During the month of September, Argo mined 165 Bitcoin or Bitcoin
Equivalent (together, BTC) compared to 206 BTC in August. This
brings the total amount of BTC mined year-to-date to 1479 BTC.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in September amounted to GBP5.50
million ($7.59 million*) (August 2021: GBP6.83 million ($9.43
million*)). Argo generated this income at a Bitcoin and Bitcoin
Equivalent Mining Margin of approximately 84% for the month of
September (August 2021: 86%). The Company has maintained consistent
Bitcoin and Bitcoin Equivalent Mining Margins despite increases in
network difficulty since July 2021.
At the end of September, the Company owned 1836 Bitcoin or BTC
equivalent.
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin is a financial
measure not defined by IFRS. We believe Bitcoin and Bitcoin
Equivalent Mining Margin has limitations as an analytical tool. In
particular, Bitcoin and Bitcoin Equivalent Mining Margin excludes
the depreciation of mining equipment and so does not reflect the
full cost of our mining operations, and it also excludes the
effects of fluctuations in the value of digital currencies and
realized losses on the sale of digital assets, which affect our
IFRS gross profit. This measure should not be considered as an
alternative to gross margin determined in accordance with IFRS, or
other IFRS measures. This measure is not necessarily comparable to
similarly titled measures used by other companies. As a result, you
should not consider this measure in isolation from, or as a
substitute analysis for, our gross margin as determined in
accordance with IFRS.
The following table shows a reconciliation of Bitcoin and
Bitcoin Equivalent Mining Margin to gross margin, the most directly
comparable IFRS measure, for the months of August and September
2021.
Month Ended 31 August Month Ended 30 September
2021 2021
--------------------------------- ---------------------------
GBP $ GBP $
Gross Profit 10,427,53 14,396,250 108,284 149,497
Gross Margin(1) 145% 145% 2% 2%
Depreciation of mining
equipment 846,382 1,168,515 770,006 1,063,070
Charge in fair value of
digital currencies (4,736,507) (6,539,222) 4,130,925 5,703,155
Realised profit on sale
of digital currencies (305,366) (421,588) (74,582) (102,968)
Crypto-currency management
fees (327,652) (452,356) (298,136) (411,607)
Mining Profit 5,904,388 8,151,599 4,636,497 6,401,147
Bitcoin and Bitcoin Equivalent
Mining Margin 86% 86% 84% 84%
----------------------------------- ------------------- ------------ ------------- ------------
(1) Due to favourable changes in fair value of Bitcoin and
Bitcoin Equivalents in August and September 2021, gross profit
exceeded revenue in both periods.
*Dollar values translated from pound sterling into U.S. dollars
at the rate of GBP1.00 to $1.38, which was the noon buying rate of
the Federal Reserve Bank of New York on June 30, 2021.
This announcement contains inside information.
For further information please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203 434 2334
Chief Executive
------------------------------
finnCap Ltd
------------------------------
Corporate Finance
Jonny Franklin-Adams
Tim Harper
Joint Corporate Broker
Sunila de Silva +44 207 220 0500
------------------------------
Tennyson Securities
------------------------------
Joint Corporate Broker
Peter Krens +44 207 186 9030
------------------------------
OTC Markets
------------------------------
Jonathan Dickson +44 204 526 4581
jonathan@otcmarkets.com +44 7731 815 896
------------------------------
Tancredi Intelligent Communication
UK & Europe Media Relations
------------------------------
Emma Valgimigli
Emma Hodges +44 7727 180 873
Salamander Davoudi +44 7861 995 628
argoblock@tancredigroup.com +44 7957 549 906
------------------------------
About Argo:
Argo Blockchain plc is a global leader in cryptocurrency mining
with one of the largest and most efficient operations powered by
clean energy. The Company is headquartered in London, UK and its
shares are listed on the Main Market of the London Stock Exchange
under the ticker: ARB and on the Nasdaq Global Select Market in the
United States under the ticker: ARBK.
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