Argo Blockchain Suffers Severe Losses In 2022 Due To Bitcoin Price Plunge

Key Points:

• Argo Blockchain declined in 2022 as the price of Bitcoin declined and mining difficulty grew, pushing up expenses.
• During the fiscal year 2022, the company mined 2,156 bitcoins, a 5% increase over the previous year.

According to the London-listed company’s results call on Friday, Argo Blockchain PLC mined 2,156 Bitcoin during the fiscal year 2022, a 5% rise over the previous year.

Mining activities brought in $58.6 million in income, a 36% decline from 2021 owing to the bitcoin bear market, an increase in global hashrate and network difficulty, and rising energy prices.

According to a statement, the London-based company recorded a net loss of 194.2 million British pounds ($240 million) compared to a net gain of 30.8 million pounds the previous year. Meanwhile, the price of Bitcoin fell by more than 60% last year.

Adjusted EBITDA was $1.2 million, down from $74.2 million in 2021, and margins were 54%, down from 84%. Argo has 141 Bitcoin as of December 31, 2022. Argo boosted hashrate capacity by 55%, from 1.6 EH/s at the end of 2021 to 2.5 EH/s at the end of 2022, in terms of operational highlights.

Seif El-Bakly, Argo Blockchain Interim CEO, stated:

“Having navigated challenging market conditions in both the crypto sector and the global economy in the second half of 2022, Argo has emerged stronger and in a much more solid financial position.”

The company avoided bankruptcy on December 29 by agreeing to sell its Helios mining plant in Dickens County, Texas, to Galaxy Digital for $65 million. It also obtained a fresh $35 million loan secured by its mining equipment from investor Michael Novogratz’s crypto-focused financial services business.

Argo retained possession of its entire fleet of mining equipment, and Galaxy has signed a two-year hosting arrangement with Helios to host roughly 23,619 Bitmain S19J Pro machines.

Argo also completed a swap deal with Core Scientific for S19J Pro machines totaling roughly 970 PH/s, concluding the hosting relationship with Core in lieu of self-mining activities at Helios.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News