The publicly-listed Bitcoin (BTC) miner from Wall Street (NASDAQ: ARBK) and London Stock Exchange (LSE: ARB), Argo Blockchain, announced today (Wednesday) its interim results for the first half of 2024. The company reported an 18% increase in revenue to $29.3 million compared to the same period last year, achieving growth despite the Bitcoin halving event and a significant decrease in the number of Bitcoin mined.
Argo Blockchain Reports 18% Revenue Growth in First Half 2024 despite Bitcoin Halving
The London-based firm mined 507 Bitcoin during the first six months of 2024, a 46% decrease from the 947 Bitcoin mined in the first half of 2023. This reduction was primarily attributed to the increase in global hashrate and the decline in Bitcoin-denominated hash price.
“Argo's focus on financial discipline and operational efficiency enabled us to pay off our $35 million debt obligation to Galaxy, significantly deleveraging our balance sheet,” Thomas Chippas, CEO of Argo Blockchain , commented on the results. “This positions us well to explore investing in growth and strategic initiatives that can drive long-term value for our shareholders.”
Argo's mining margin stood at $11.5 million, or 39%, for the first half of 2024, compared to $10.2 million, or 42%, for the same period in 2023. The company reported a net loss of $32.7 million, widening from an $18.6 million loss in the first half of the previous year. However, adjusted EBITDA improved to $5.7 million from $2.8 million year-over-year.
The deepened loss is, however, the effect of recent moves to strengthen the company’s balance sheet. Argo reduced its loan from Galaxy Digital from $23.5 million at the beginning of the year to $5.3 million by June 30, 2024. The company subsequently announced that it had fully repaid the Galaxy loan in August.
Not only Argo, but other publicly listed miners are also experiencing a “halving hangover.” According to the latest report from VanEck, cryptocurrency miners' revenues have declined by another 12%, marking another consecutive month of negative response to the reduced rewards for mined BTC blocks.
Argo’s interim results for 2024 are out!
— Argo (@ArgoBlockchain) August 28, 2024
Highlights:
🔶Generated revenues of $29.3 million for H1 2024 compared to $24.0 million for H1 2023, an 18% increase
🔶 Mining margin of $11.5 million or 39% for H1 2024
🔶 Fully repaid the Galaxy loan in August 2024
🔶Ended the…
What Else Does the Report Reveal?
The company also reported several strategic moves during the period, including raising $9.9 million through a share issuance in January and selling its five-megawatt data center in Mirabel, Quebec, for $6.1 million in March. Argo expects the consolidation of its operations to reduce non-mining operating expenses by $0.7 million annually.
Despite these positive developments, Argo recorded a $22 million impairment on its mining machines, reflecting current challenging market conditions in the cryptocurrency mining sector.
As of June 30, 2024, Argo held $4.0 million in cash and 11 Bitcoin equivalent. The company further bolstered its financial position by raising an additional $8.3 million through a private share placement with an institutional investor in July.
