Jun 06, 2023 05:10
Argo
Blockchain (LSE: ARB; NASDAQ: ARBK), a major cryptocurrency mining company,
recently shared its unaudited financial results for Q1 2023. Although the
report showed notable improvements in revenue, cash reserves, and cost
reductions, the company could not achieve a positive net result.
Argo Blockchain Boosts
Revenues in Q1 2023
Argo
Blockchain ended the first quarter with a substantial balance of $14.2 million
in cash and 85 Bitcoin or Bitcoin Equivalents (BTC) in its reserves. The
company reported a revenue increase of 15% from Q4 2022, totaling $11.4
million. Despite a net loss of $8.7 million, Argo Blockchain demonstrated
resilience by achieving an adjusted EBITDA of $1.6 million.
Throughout
the quarter, Argo Blockchain displayed consistent mining performance, mining an
average of 5.3 BTC per day, totaling 491 BTC. Mining margins for the quarter
improved significantly to 49%, which is up from 35% in Q4 2022.
New RNS: Argo released its Q1 2023 earnings today:+Cash of $14m at the end of March+Q1 revenue of $11m (up 15% from Q4'22)+Mining margin of 49% (up from 35% in Q4'22)+Reduced opex by 70% from H2'22+BlockMiners to add 300 PH/sRNS: https://t.co/OjBHf7KGyq#ARB$ARBK#BTC
— Argo (@ArgoBlockchain)
June 6, 2023"The Argo
team is moving ahead with a focus on financial discipline, operational
excellence, and growth and strategic partnerships," Seif El-Bakly, the
Interim Chief Executive Officer of Argo, said. "To support these
initiatives, we recently strengthened our finance team and appointed Jim
MacCallum, CPA, CFA, as Chief Financial Officer."
MacCallum,
a Certified Public Accountant and Chartered Financial Analyst brings over 30
years of experience in finance and accounting roles.
Two months
ago, the publicly-listed miner published its financials for 2022, ending the
year with a revenue of £47.4 million ($58.6 million), which is a decrease of 36%.
The company posted a net loss of £194.2 million ($240.2 million) for 2022,
driven by the declining value of cryptocurrencies.
Argo Blockchain Cuts Costs
Additionally, Argo
Blockchain achieved substantial cost reductions in Q1 2023. Operating costs
and expenses dropped 70% compared to the average in the second half of 2022,
and finance costs fell 63% in the same period.
When it
comes to financial discipline, Argo Blockchain has adopted a more scrutinizing
approach toward all operating expenses, implementing a stringent internal
process targeted explicitly at minimizing non-mining costs. The result of this
disciplined approach is a notable 70% reduction in expenses as compared to
2022. In addition to this, the company is actively considering different
strategies to fortify its balance sheet.
During Q1, Argo successfully transitioned the Helios facility to Galaxy Digital, and the overall cost for power and hosting was lower than previously forecasted. The decision to sell the mining plant was revealed in December and saved the
company from potential bankruptcy filling.
Looking
ahead, Argo plans to install 'BlockMiner' machines at its Quebec
facilities later this year. They are expected to increase the company's total
hash rate to approximately 2.8 EH/s.
The
previous year was particularly hard for the mining companies, as their revenues
fell 37.5% to $9.55 billion. Overall, BTC miners made $6 billion less than in
2022.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
