Argo Blockchain Plc(US:ARBK)2024-08-28 11:05Financial Performance - Revenues for H1 2024 were $29.3 million, an 18% increase from $24.0 million in H1 2023, driven primarily by an increase in Bitcoin price[9]. - Adjusted EBITDA for H1 2024 was $5.7 million, up from $2.8 million in H1 2023[10]. - The company reported a loss before tax of $32,394,000 for the period ended June 30, 2024, compared to a loss of $18,563,000 for the same period in 2023, indicating an increase in losses of approximately 74%[30]. - The company expects its mining margin percentage to decline in the second half of 2024 due to challenging mining economics[41]. - The Group reported a loss before taxation of $32.4 million for the period ended 30 June 2024, compared to a loss of $18.6 million for the same period in 2023[51]. Mining Operations - The total number of Bitcoin mined during H1 2024 was 507, a 46% decrease from 947 in H1 2023, attributed to an increase in global hashrate and reduction in bitcoin denominated hash price[9]. - Mining margin for H1 2024 was $11.5 million or 39%, compared to $10.2 million or 42% for H1 2023[9]. - The company recorded a $22 million impairment charge during the period, reflecting challenges in mining economics[44]. - An impairment charge of $22 million was recorded for mining and computer equipment due to reduced fair market values and deteriorating mining economics[55]. - The Group mined 29,255 crypto assets during the period, compared to 50,558 in the previous year[57]. Financial Position - The company repaid its $35 million debt obligation to Galaxy, significantly deleveraging its balance sheet ahead of schedule[6][15]. - Total assets decreased from $75,940,000 as of December 31, 2023, to $33,331,000 as of June 30, 2024, representing a decline of approximately 56%[26]. - Cash and cash equivalents decreased from $7,443,000 at the beginning of the period to $3,985,000 at the end of the period, a decline of approximately 47%[31]. - Total current liabilities decreased from $27,585,000 as of December 31, 2023, to $14,428,000 as of June 30, 2024, a reduction of approximately 48%[26]. - The accumulated deficit increased from $192,370,000 as of December 31, 2023, to $225,104,000 as of June 30, 2024, an increase of approximately 17%[28]. Operational Efficiency - Operating expenses were reduced by over 70% to $5.8 million compared to the second half of fiscal 2022, and by over 25% compared to the first half of 2023[19]. - The sale of the Mirabel facility for $6.1 million is expected to reduce non-mining operating expenses by $0.7 million annually[9][18]. - The company ended June 2024 with $4.0 million in cash and 11 Bitcoin equivalent[9]. Shareholder Actions - The company issued 57.8 million shares post-June 30, 2024, raising gross proceeds of $8.3 million, which was used to repay Galaxy debt[42]. - The company’s share capital increased from $712,000 to $764,000, reflecting new share issuance[28]. - The Group issued 57.5 million ordinary shares and 57.5 million warrants for net proceeds of $7.7 million in July 2024[72]. Future Outlook - Future focus will remain on financial discipline, operational excellence, and growth through strategic partnerships[22]. - The company faces material uncertainties regarding its ability to continue as a going concern, particularly related to Bitcoin prices and power costs[43].