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Cryptocurrency Miner Argo Blockchain H1 Revenue Tumbles 31% On Lower Bitcoin Price

Cryptocurrency mining company Argo Blockchain PLC (NASDAQ:ARBK) H1 2023 revenue declined 31% Y/Y to $24.0 million due to lower Bitcoin price, higher global hashrate (+78% Y/Y), and related network difficulty.

The company reported an EPS loss of $(0.03) in H1, narrower than $(0.08) a year ago.

In H1 FY23, ARBK achieved a mining margin of 42%, higher than 33% in H2 FY22, mainly aided by the fixed price power purchase agreement at Helios that covers a significant portion of the facility’s electricity load. 

In Q2 2023, the company generated power credits of around $1.1 million and expects to generate more significant power credits in Q3 on the continued heat wave in Texas.

The total number of Bitcoin and Bitcoin Equivalent (BTC) mined in H1 2023 stood at 947, up 1% Y/Y, despite an increase in the global hashrate.

Adjusted EBITDA stood at $2.3 million in H1 2023, a decline from $17.8 million a year ago. 

As of June 30, 2023, the company had $9.1 million of cash and 46 Bitcoin or Bitcoin Equivalent.

Post Q2 end, ARBK raised gross proceeds of $7.5 million through a share placement with institutional and retail investors in the U.K. 

The company used a portion of the proceeds to repay around $1.8 million in debt. At the end of July 2023, debt balance was $72 million.

ARBK expects to deploy an additional 1,628 BlockMiners in the coming months, raising the total hashrate capacity to 2.8 EH/s.

Price Action: ARBK shares closed lower by 0.87% at $0.9913 on Monday.

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