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Argo Blockchain PLC Announces Interim Half Year Results 2022


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Argo Blockchain plc (“Argo” or “the Group”) Interim Half Year Results 2022

LONDON, UK / ACCESSWIRE / August 24, 2022 / Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ: ARBK), is pleased to announce its results for the six months to 30 June 2022.

Financial Highlights

● Total number of Bitcoin and Bitcoin Equivalent (“BTC”) mined during H1 2022 was 939, a 6% increase over the BTC mined in H1 2021

● Revenues of 26.7 million ($32.5 million), a decrease of 14% from H1 2021, driven primarily by a decrease in Bitcoin price and an increase in the global hashrate and associated network difficulty level

● Adjusted EBITDA of £17.1 million ($20.9 million), a decrease of 28% from H1 2021

● Mining margin of 71%, down from 81% in H1 2021. Similar to revenue, this decrease is largely attributable to the decrease in Bitcoin price and an increase in network difficulty

● Pre-tax loss of £36.9 million ($44.9 million), driven primarily by a non-cash reduction in the fair value of digital currencies held on the balance sheet

● Total number of BTC held at 30 June 2022 was 1,953, a 54% increase from 1,268 BTC held at 30 June 2021

Operational Highlights

● Energized Phase 1 of the Helios facility in Dickens County, Texas and commenced mining operations on 5 May 2022

● Increased hashrate capacity by 38% from 1.6 EH/s at the end of 2021 to 2.2 EH/s at the end of July 2022

● Obtained $26.7 million (£20.2 million) of financing from NYDIG secured by certain electrical infrastructure equipment at Helios

● Obtained up to $70.6 million (£56.3 million) of additional financing from NYDIG secured by certain Bitmain S19J Pro machines at Helios

● Executed an agreement with ePIC Blockchain Technologies to purchase custom mining machines for use with Intel’s Blockscale ASIC chip

Post Period End

● Strengthened balance sheet by reducing exposure on BTC-backed loan with Galaxy Digital to £5.5 million ($6.7 million)

● Completed swap agreement with Core Scientific for approximately 10,000 S19J Pro machines, which completes the strategic pivot to a self-hosted business model in which Argo owns and operates its own machines and infrastructure

● Released the Group’s 2021 Sustainability Report and maintained climate positive status by producing no Scope 1 emissions and offsetting all Scope 2 and Scope 3 emissions through renewable energy credits and verifiable emissions reductions

Update to Mining Capacity Guidance

In response to current market conditions and to reduce near-term capital intensity, the Group is updating its year end guidance for hashrate capacity. The Group expects to achieve 3.2 EH/s of total hashrate capacity by the end of 2022 and to increase capacity in Q1 2023 to 4.1 EH/s.

Peter Wall, CEO of Argo, said: “The delivery and installation of the approximately 20,000 S19J Pro machines from Bitmain continues to progress on schedule, and we still expect to have all of these machines installed by October 2022. The revision to our hashrate guidance reflects our current expectations for delivery and deployment of the custom machines we are developing with ePIC Blockchain Technologies (“ePIC”) that utilize the Intel® Blockscale” ASIC chips. We have worked closely with ePIC and Intel to modify the machine design to increase total mining efficiency, which has delayed our expected deployment schedule. Further, we are preserving our optionality by reducing our overall capital spending on these machines as market conditions remain volatile. We remain confident in the performance of the custom machines and are excited to deploy them starting in Q1 2023.”

Non-IFRS Measures

The following table shows a reconciliation of gross margin to Bitcoin and Bitcoin Equivalent Mining Margin, the most directly comparable IFRS measure, for the periods ended 30 June 2022 and 30 June 2021.

Period ended
30 June 2022

Period ended
30 June 2021



Gross (loss)/profit



Gross margin



Depreciation of mining equipment



Change in fair value of digital currencies



Realised loss/(gain) on sale of digital currencies



Non mining revenue


Mining Profit



Bitcoin and Bitcoin Equivalent Mining Margin



The following table shows a reconciliation of Adjusted EBITDA to net income, the most directly comparable IFRS measure, for the periods ended 30 June 2022 and 30 June 2021.

Period ended
30 June 2022
Period ended
30 June 2021

(Loss) / Profit after taxation

(30,504 ) 7,214

Interest expense

3,477 411

Income tax (credit)/expense

(6,386 ) 3,484


11,718 4,870

Share based payment

2,816 1,568

Change in fair value of digital currencies

36,025 6,407

Adjusted EBITDA

17,146 23,954

Inside Information and Forward-Looking Statements

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
Chief Executive

via Tancredi +44 203 434 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
[email protected]

+44 204 526 4581
+44 7731 815 896

Tancredi Intelligent Communication
UK & Europe Media Relations

Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed
[email protected]

+44 7727 180 873
+44 7888 672 701
+44 7915 033 739

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With its flagship mining facility in Texas, and offices in the US, Canada, and the UK, Argo’s global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. Argo also participates in several Web 3.0, DeFi and GameFi projects through its Argo Labs division, further contributing to its business operations, as well as the development of the cryptocurrency markets. For more information, visit

Interim Management Report

Argo entered 2022 with two clear goals: to complete Phase 1 of the Group’s Helios facility in Dickens County, Texas while continuing to optimise the performance of its existing mining fleet.

Argo is making significant progress towards the completion of Phase 1 of Helios; on 5 May 2022, the Group energized the facility and commenced mining operations. Argo commemorated this important milestone with an inauguration ceremony attended by local, state, and federal elected officials, as well as members of the local…

Read More: Argo Blockchain PLC Announces Interim Half Year Results 2022

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