Despite reducing debt and operational costs, Argo reports a net loss in H1 2023.
The company's revenue declined 31%, but it managed to increase its BTC mining 1%.
The recent
Argo Blockchain financial report presents a mixed bag, with the company making
strides in reducing operational costs and debt but facing a decline in
revenue and net loss. The publicly-listed firmβs results for the first half
of 2023 show what problems the mining industry centered around Bitcoin (BTC)
and other cryptocurrencies is currently facing.
Argo Blockchain Reduces
Debt and Costs
Argo
Blockchain managed to cut its non-mining operational costs 21% in Q2 2023, compared to the previous quarter. This led to a positive
Adjusted EBITDA of $1 million for Q2 and $2.3 million for H1 2023. Additionally,
the company reduced its debt by $4 million during the quarter, reducing it to $75 million as of 30 June. It marked a significant drop from $143 million a
year ago.
However,
this does not change the fact that adjusted EBITDA in the same period a year
earlier was much higher at nearly $18 million.
Mining, Revenues and Net
Loss
The company
mined 947 Bitcoin and Bitcoin Equivalent (BTC) during the H1 2023,
marking an increase of 1% over the same period last year.
"During
H1 2023, the Company achieved a mining margin of 42%, which is an increase from
the mining margin in H2 2022 of 33%," the company commented in the
official statement.
However,
this achievement was overshadowed by a revenue decrease of 31%, totaling $24
million for H1 2023. The decline was primarily due to a drop in Bitcoin prices
and an increase in global hashrate, which made mining more competitive. In H1
2022, revenues ranked at $34.6 million.
Despite the
positive cost and debt reduction strides, Argo Blockchain reported a net loss
of $18.8 million for H1 2023. Although it is an improvement over the $39.6
million net loss reported in H1 2022, it clearly shows the difficult situation
facing the mining industry.
The company
ended June with $9.1 million in cash and 46 BTC in its balance sheet. It raised
an additional $7.5 million in July through a share placement.
Argo Saved by Mike Novogratz
In a move
that quashed rumors of impending bankruptcy, the company, listed on the London
and New York stock exchanges, entered into a pivotal agreement with Galaxy
Digital Holdings, Ltd. The latter is a financial institution specializing in
digital assets and is helmed by Mike Novogratz. As part of the deal, Argo
Blockchain offloaded its Texas-based Helios cryptocurrency mine for a sum of
$65 million. Galaxy Digital also restructured the loans Argo had previously
secured to fund its ongoing operations.
Several
months after the Galaxy deal, Argo Blockchain announced the appointment of Jim
MacCallum as its new Chief Financial Officer. Alongside this leadership change,
the company disclosed its latest operational metrics, which indicated a decline
in mining output relative to the previous month. According to the company's
July 2023 report, there was a noticeable decrease in both monthly Bitcoin
production and revenue. In June 2023, the company mined an average of 4.6
Bitcoin per day, marking a drop of 17% from the 5.6 Bitcoin mined daily in May
2023.
As you can
see from the chart above, 2022 proved to be a difficult period for
Bitcoin miners, following a highly profitable 2021. The decline in
earnings, amounting to a staggering $6 billion, was primarily attributed to the
increasing complexity of the mining process.
The recent
Argo Blockchain financial report presents a mixed bag, with the company making
strides in reducing operational costs and debt but facing a decline in
revenue and net loss. The publicly-listed firmβs results for the first half
of 2023 show what problems the mining industry centered around Bitcoin (BTC)
and other cryptocurrencies is currently facing.
Argo Blockchain Reduces
Debt and Costs
Argo
Blockchain managed to cut its non-mining operational costs 21% in Q2 2023, compared to the previous quarter. This led to a positive
Adjusted EBITDA of $1 million for Q2 and $2.3 million for H1 2023. Additionally,
the company reduced its debt by $4 million during the quarter, reducing it to $75 million as of 30 June. It marked a significant drop from $143 million a
year ago.
However,
this does not change the fact that adjusted EBITDA in the same period a year
earlier was much higher at nearly $18 million.
Mining, Revenues and Net
Loss
The company
mined 947 Bitcoin and Bitcoin Equivalent (BTC) during the H1 2023,
marking an increase of 1% over the same period last year.
"During
H1 2023, the Company achieved a mining margin of 42%, which is an increase from
the mining margin in H2 2022 of 33%," the company commented in the
official statement.
However,
this achievement was overshadowed by a revenue decrease of 31%, totaling $24
million for H1 2023. The decline was primarily due to a drop in Bitcoin prices
and an increase in global hashrate, which made mining more competitive. In H1
2022, revenues ranked at $34.6 million.
Despite the
positive cost and debt reduction strides, Argo Blockchain reported a net loss
of $18.8 million for H1 2023. Although it is an improvement over the $39.6
million net loss reported in H1 2022, it clearly shows the difficult situation
facing the mining industry.
The company
ended June with $9.1 million in cash and 46 BTC in its balance sheet. It raised
an additional $7.5 million in July through a share placement.
Argo Saved by Mike Novogratz
In a move
that quashed rumors of impending bankruptcy, the company, listed on the London
and New York stock exchanges, entered into a pivotal agreement with Galaxy
Digital Holdings, Ltd. The latter is a financial institution specializing in
digital assets and is helmed by Mike Novogratz. As part of the deal, Argo
Blockchain offloaded its Texas-based Helios cryptocurrency mine for a sum of
$65 million. Galaxy Digital also restructured the loans Argo had previously
secured to fund its ongoing operations.
Several
months after the Galaxy deal, Argo Blockchain announced the appointment of Jim
MacCallum as its new Chief Financial Officer. Alongside this leadership change,
the company disclosed its latest operational metrics, which indicated a decline
in mining output relative to the previous month. According to the company's
July 2023 report, there was a noticeable decrease in both monthly Bitcoin
production and revenue. In June 2023, the company mined an average of 4.6
Bitcoin per day, marking a drop of 17% from the 5.6 Bitcoin mined daily in May
2023.
As you can
see from the chart above, 2022 proved to be a difficult period for
Bitcoin miners, following a highly profitable 2021. The decline in
earnings, amounting to a staggering $6 billion, was primarily attributed to the
increasing complexity of the mining process.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Crypto Regulations Are Imminent, but Will the Regulators Align?
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
π Facebook: https://www.facebook.com/financemagnates/
πΈ Instagram: https://www.instagram.com/financemagnates_official
π¦ X (Twitter): https://twitter.com/financemagnates/
π‘ RSS Feed: https://www.financemagnates.com/feed/
βΆοΈ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
π Facebook: https://www.facebook.com/financemagnates/
πΈ Instagram: https://www.instagram.com/financemagnates_official
π¦ X (Twitter): https://twitter.com/financemagnates/
π‘ RSS Feed: https://www.financemagnates.com/feed/
βΆοΈ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
π Facebook: https://www.facebook.com/financemagnates/
πΈ Instagram: https://www.instagram.com/financemagnates_official
π¦ X (Twitter): https://twitter.com/financemagnates/
π‘ RSS Feed: https://www.financemagnates.com/feed/
βΆοΈ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
π£ Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
π LinkedIn: https://www.linkedin.com/company/financemagnates/
π Facebook: https://www.facebook.com/financemagnates/
πΈ Instagram: https://www.instagram.com/financemagnates_official
π¦ X (Twitter): https://twitter.com/financemagnates/
π‘ RSS Feed: https://www.financemagnates.com/feed/
βΆοΈ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
π Subscribe to our YouTube channel for more!π