Key Points:
- Argo Blockchain reports half-year net losses of $18.8 million in 2023, down over 50% from 2022
- Debt reduced by $68 million to $75 million
- Revenues down by 31% due to decrease in Bitcoin value and increase in global hash rate
- Total of 947 BTC mined in first half of 2023, an increase of 1% from 2022
- Argo plans to increase total hash rate capacity and explores options to reduce overall debt
Detail:
Argo Blockchain, a mining company that has faced challenges in a tough market, has announced a significant reduction in its debt. The company reported half-year net losses of $18.8 million in 2023, marking a decrease of over 50% from the previous year. Argo has also managed to cut its debt by $68 million to reach a total of $75 million, a positive step in its financial recovery.
The company attributed the decline in revenues to a decrease in the value of Bitcoin and the increase in global hash rate, which resulted in higher network difficulty. Revenues were down by 31% compared to the first half of 2022. Despite this, Argo was able to mine a total of 947 BTC in the first half of the year, representing a 1% increase from the same period in 2022.
Looking ahead, Argo plans to boost its total hash rate capacity to 2.8 exahashes per second (EH/s) by deploying 1,628 BlockMiners to its mining facilities in Quebec. The company is also in discussions to sell non-core assets and exploring other options to further reduce its debt.
Argo's board chairman, Matthew Shaw, highlighted the company's partnership with Galaxy Digital, which included the sale of its Helios mining facility for $65 million in December 2022. The sale helped reduce total indebtedness by $41 million and simplify Argo's operations. Shaw emphasized the importance of maintaining a fleet of over 27,000 miners for the company's ongoing operations.
It is worth noting that Argo faced challenging financial circumstances in 2022 and narrowly avoided bankruptcy by striking a deal with Galaxy for its Helios facility. Following the closure of the deal, the former CEO of Argo, Peter Wall, resigned from his position.
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