TIDMARB
RNS Number : 8121A
Argo Blockchain PLC
07 February 2022
Press Release
07 February 2022
Argo Blockchain PLC
("Argo" or "the Company")
January 2022 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 January 2022.
During the month of January, Argo mined 172 Bitcoin or Bitcoin
Equivalent (together, BTC) compared to 214 BTC in December 2021.
This reduction during January is primarily due to an increase in
network difficulty.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in January amounted to GBP5.26
million [$7.10 million*] (December 2021: GBP7.82 million [$10.55
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of approximately 74% for the month of January
(December 2021: 83%).
At the end of January, the Company owned 2,748 Bitcoin of which
262 were BTC equivalents.
Peter Wall, Chief Executive of Argo and interim Chairman, said:
"As our mining operations continue to develop and the completion
date of Helios, our new mining facility, approaches, this month we
have laid the foundations for executing our growth strategy for
2022 and achieving the objectives we have set for the Company in
the year ahead".
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 gross margin to
Bitcoin and Bitcoin Equivalent Mining Margin, the most directly
comparable IFRS measure, for the months of December 2021 and
January 2022.
Month Ended 31 December Month Ended 31January
2021 2022
------------------------------- --------------------------------
GBP $ GBP $
Gross (loss) (12,593,995) (17,008,110) (13,204,218) (17,832,213)
Gross Margin(1) (161%) (161%) (251%) (251%)
Depreciation of mining
equipment 1,444,614 1,950,942 1,284,142 1,734,226
Charge in fair value of
digital currencies 18,271,429 24,675,448 15,460,310 20,879,050
Realised loss on sale of
digital currencies 740,713 1,000,328 331,171 447,244
Cryptocurrency management
fees(2) (1,388,635) (1,875,343) - -
Mining Profit 6,474,126 8,743,265 3,871,405 5,228,308
Bitcoin and Bitcoin Equivalent
Mining Margin 83% 83% 74% 74%
-------------------------------- -------------- --------------- --------------- ---------------
(1) Due to unfavourable changes in fair value of Bitcoin and Bitcoin
Equivalents in December 2021 and January 2022 there was a loss on
change in fair value of digital currencies.
(2) The cryptocurrency management fees include the settlement amount
with Celsius and as such are higher than normal in December 2021.
*Dollar values translated from pound sterling into U.S. dollars
using the noon buying rate of the Federal Reserve Bank of New York
as at the applicable dates.
Forward-Looking Information
This announcement contains inside information and includes
forward-looking statements which reflect the Company's or, as
appropriate, the Directors' current views, interpretations, beliefs
or expectations with respect to the Company's financial
performance, business strategy and plans and objectives of
management for future operations. These statements include
forward-looking statements both with respect to the Company and the
sector and industry in which the Company operates. Statements which
include the words "expects", "intends", "plans", "believes",
"projects", "anticipates", "will", "targets", "aims", "may",
"would", "could", "continue", "estimate", "future", "opportunity",
"potential" or, in each case, their negatives, and similar
statements of a future or forward-looking nature identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties because they relate to
events that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. Accordingly,
there are or will be important factors that could cause the
Company's actual results, prospects and performance to differ
materially from those indicated in these statements. In addition,
even if the Company's actual results, prospects and performance are
consistent with the forward-looking statements contained in this
document, those results may not be indicative of results in
subsequent periods. These forward-looking statements speak only as
of the date of this announcement. Subject to any obligations under
the Prospectus Regulation Rules, the Market Abuse Regulation, 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 law and regulations, the Company undertakes no
obligation publicly to update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise. For a more complete discussion of
factors that could cause our actual results to differ from those
described in this announcement, please refer to the filings that
Company makes from time to time with the United States Securities
and Exchange Commission and the United Kingdom Financial Conduct
Authority, including the section entitled "Risk Factors" in the
Company's Registration Statement on Form F-1.
For further information please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203
Chief Executive 434 2334
----------------------
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
Salamander Davoudi +44 7727 180 873
Fabio Galloni-Roversi +44 7861 995 628
Monaco +44 7957 549 906
argoblock@tancredigroup.com +44 7888 672 701
----------------------
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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