Argo Blockchain Reports $8.7M Net Loss in Q1 2023 Amid Revenue Growth and Cost Reductions
[gpt3]rewrite
Argo Blockchain (LSE: ARB; NASDAQ: ARBK), a major cryptocurrency mining company, recently shared its unaudited financial results for Q1 2023. Although the report showed notable improvements in revenue, cash reserves and cost reductions, the company failed to achieve a positive net result.
Argo Blockchain increases revenue in Q1 2023
Argo Blockchain ended the first quarter with a significant balance of $14.2 million in cash and 85 Bitcoin or Bitcoin Equivalents (BTC) in reserves. The company reported a 15% increase in revenue from Q4 2022, totaling $11.4 million. Despite a net loss of $8.7 million, Argo Blockchain demonstrated resilience by achieving adjusted EBITDA of $1.6 million.
Throughout the quarter, Argo Blockchain showed consistent mining activity, averaging 5.3 BTC per day, totaling 491 BTC. Mining margins for the quarter improved significantly to 49%, up from 35% in Q4 2022.
New RNS: Argo published its results for the first quarter of 2023 today:
+Cash of $14 million at the end of March
+ Q1 revenue of $11m (up 15% from Q4’22)
+ Mining margin of 49% (up from 35% in Q4’22)
+Reduced operating costs by 70% from H2’22
+BlockMiners to add 300 PH/sRNS: https://t.co/OjBHf7KGyq#ARB$ARBK#BTC
— Argo (@ArgoBlockchain) 6 June 2023
“The Argo team is moving forward with a focus on financial discipline, operational excellence and growth and strategic partnerships,” said Seif El-Bakly, Interim CEO of Argo. “To support these initiatives, we recently strengthened our finance team and named Jim MacCallum, CPA, CFA, as CFO.”
MacCallum, a Certified Public Accountant and Chartered Financial Analyst has over 30 years of experience in finance and accounting roles.
Two months ago, the listed miner published its 2022 financials, ending the year with revenue of £47.4 million ($58.6 million), down 36%. The company posted a net loss of £194.2 million ($240.2 million) for 2022, driven by the declining value of cryptocurrencies.
Argo Blockchain reduces costs
Argo Blockchain also achieved significant cost reductions in Q1 2023. Operating costs and expenses fell by 70% compared to the average in the second half of 2022, and finance costs fell by 63% in the same comparison period.
When it comes to financial discipline, Argo Blockchain has adopted a more scrutinizing approach to all operating expenses, implementing a strict internal process aimed explicitly at minimizing non-mining costs. The result of this disciplined approach is a noticeable 70% reduction in expenses compared to 2022. In addition to this, the company is actively considering various strategies to strengthen the balance sheet.
During the first quarter, Argo transferred the Helios facility to Galaxy Digital, and the average total cost of power and hosting was lower than previously forecast. The decision to sell the mining facility was revealed in December and saved the company from potential bankruptcy filling.
Looking ahead, Argo plans to install “BlockMiner” machines at its Quebec facilities later this year. They are expected to increase the company’s total hashrate to approximately 2.8 EH/s.
The previous year was particularly difficult for mining companies, as their revenue fell 37.5% to $9.55 billion. Overall, BTC miners earned $6 billion less than in 2022.
Argo Blockchain (LSE: ARB; NASDAQ: ARBK), a major cryptocurrency mining company, recently shared its unaudited financial results for Q1 2023. Although the report showed notable improvements in revenue, cash reserves and cost reductions, the company failed to achieve a positive net result.
Argo Blockchain increases revenue in Q1 2023
Argo Blockchain ended the first quarter with a significant balance of $14.2 million in cash and 85 Bitcoin or Bitcoin Equivalents (BTC) in reserves. The company reported a 15% increase in revenue from Q4 2022, totaling $11.4 million. Despite a net loss of $8.7 million, Argo Blockchain demonstrated resilience by achieving adjusted EBITDA of $1.6 million.
Throughout the quarter, Argo Blockchain showed consistent mining activity, averaging 5.3 BTC per day, totaling 491 BTC. Mining margins for the quarter improved significantly to 49%, up from 35% in Q4 2022.
New RNS: Argo published its results for the first quarter of 2023 today:
+Cash of $14 million at the end of March
+Q1 revenue of $11m (up 15% from Q4’22)
+ Mining margin of 49% (up from 35% in Q4’22)
+Reduced operating costs by 70% from H2’22
+BlockMiners to add 300 PH/sRNS: https://t.co/OjBHf7KGyq#ARB$ARBK#BTC
— Argo (@ArgoBlockchain) 6 June 2023
“The Argo team is moving forward with a focus on financial discipline, operational excellence and growth and strategic partnerships,” said Seif El-Bakly, Interim CEO of Argo. “To support these initiatives, we recently strengthened our finance team and named Jim MacCallum, CPA, CFA, as CFO.”
MacCallum, a Certified Public Accountant and Chartered Financial Analyst has over 30 years of experience in finance and accounting roles.
Two months ago, the listed miner published its 2022 financials, ending the year with revenue of £47.4 million ($58.6 million), down 36%. The company posted a net loss of £194.2 million ($240.2 million) for 2022, driven by the declining value of cryptocurrencies.
Argo Blockchain reduces costs
Argo Blockchain also achieved significant cost reductions in Q1 2023. Operating costs and expenses fell by 70% compared to the average in the second half of 2022, and finance costs fell by 63% in the same comparison period.
When it comes to financial discipline, Argo Blockchain has adopted a more scrutinizing approach to all operating expenses, implementing a strict internal process aimed explicitly at minimizing non-mining costs. The result of this disciplined approach is a noticeable 70% reduction in expenses compared to 2022. In addition to this, the company is actively considering various strategies to strengthen the balance sheet.
During the first quarter, Argo transferred the Helios facility to Galaxy Digital, and the average total cost of power and hosting was lower than previously forecast. The decision to sell the mining facility was revealed in December and saved the company from potential bankruptcy filling.
Looking ahead, Argo plans to install “BlockMiner” machines at its Quebec facilities later this year. They are expected to increase the company’s total hashrate to approximately 2.8 EH/s.
The previous year was particularly difficult for mining companies, as their revenue fell 37.5% to $9.55 billion. Overall, BTC miners earned $6 billion less than in 2022.
[gpt3]
