Argo Blockchain cuts 2022 debt by half, down to $75M

The mining firm, which has been considered one of various corporations to battle amid unfavorable market situations and a highly-competitive mining ecosystem, reported half 12 months web losses of $18.eight million in 2023, down over 50% from a web lack of $39.6 million in H1 2022.

Argo additionally notes that it has lowered its debt by $four million in 2023, taking its whole debt to $75 million. The corporate has minimize its debt by $68 million, having owed $143 million in June 2022.

Revenues had been down by 31% compared to H1 2022, with Argo netting $24 million halfway by means of 2023 which it linked to a lower within the worth of Bitcoin and rising world hashrate and the related community issue.

Argo reviews that it mined a complete of 947 Bitcoin by means of the primary half of the 12 months, a rise of simply 1% of the BTC mined throughout the identical interval in 2022. It’s value noting that 2023 has seen a 78% enhance in world hashrate.

As of June 2023, Argo’s steadiness sheets mirror $9.1 million of money holdings and 46 BTC. Argo started the second half of the 12 months by elevating $7.5 million in gross proceeds by means of a share placement in July 2022 supplied to institutional and retail traders.

Associated: Argo Blockchain reviews inadequate funds, ‘no assurance’ it may keep away from Chapter 11 chapter

Whereas the corporate had warned that it confronted the fact of chapter in late 2022, its 2023 interim half 12 months outcomes point out that it plans to extend its whole hashrate capability to 2.eight EH/s by deploying some 1,628 BlockMiners to its Quebec-based mining amenities.

Argo additionally reported that it was in superior discussions to promote “sure non-core property” and was exploring different choices to cut back its total debt.

Argo board chairman Matthew Shaw highlighted a “transformational sequence of transactions” with Galaxy Digital through which it offered its Helios mining facility and property for $65 million in December 2022. Argo then refinanced a brand new $35 million, three-year asset backed mortgage with Galaxy.

“The transactions lowered whole indebtedness by $41 million and allowed Argo to simplify its working construction.”

Shaw added that Argo’s skill to keep up a fleet of greater than 27,000 miners was essential to its ongoing operations, with some 23,600 Bitmain S19J Professional working on the Helios web site by means of an ongoing internet hosting settlement with Galaxy.

Mid 12 months financials point out that embattled cryptocurrency mining agency Argo Blockchain has considerably lowered its money owed and minimize half 12 months web losses compared to 2022.

Argo had beforehand warned that it was going through dire monetary circumstances  in late 2022 earlier than it struck a cope with Galaxy for its Helios facility. Within the months following the closure of the deal, Argo’s former CEO Peter Wall introduced his resignation from the corporate. 

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