Argo Blockchain's Strategic Shift Pays Off in Q1 2024, Cutting Losses Significantly

Argo Blockchain, a leading cryptocurrency mining firm, has unveiled its unaudited financial results for the first quarter of 2024, showcasing marked improvements over the same period last year. With a revenue surge to $16.8 million, marking a 4% uptick from the previous quarter and a staggering 50% increase from last year, coupled with a notable threefold reduction in net losses to $3.2 million, the company's performance signals a promising trajectory.

Argo Blockchain's Q1 2024 Performance Boosts Revenue and Trims Losses

Bolstering its mining margin to $6.4 million, up from $5.2 million reported in the prior year, Argo achieved a gross profit of $1.9 million, a remarkable turnaround from the losses recorded in Q1 2023.

Throughout the quarter, Argo mined a total of 319 Bitcoin (BTC), averaging 3.5 BTC per day, while registering an adjusted EBITDA of $3.8 million.

Despite not reaching operating profitability or net income, the company significantly slashed losses compared to the same period last year. In Q1 of the preceding year, losses exceeded $9.1 million, a figure now reduced to nearly $3.2 million, marking a significant improvement.

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Argo Blockchain mines 319 BTC in Q1

UK-based cryptocurrency mining company Argo Blockchain announced the mining of 319 BTC in the first quarter, with reported Q1 revenue of $16.8 million and $12.4 million in cash.

May 23, 2024

In a remarkable move amidst market volatility, Argo Blockchain also managed to pare down its debt by $12.4 million during the quarter, reflecting a 19% reduction from the balance at the close of 2023.

Commenting on the company's performance, Thomas Chippas, Argo's Chief Executive Officer, remarked, “Exiting the Bitcoin halving with over $12 million in cash, coupled with a Q1 debt reduction exceeding $12 million and the streamlining of our Quebec operations following the sale of Mirabel, underscores our commitment to driving value for our shareholders. We remain optimistic about Argo's future growth and development."

Argo's Strategic Moves in 2023 Yield Positive Results

Previously, Argo reported its full-year results for 2023, highlighting a year marked by strategic adjustments amid industry headwinds. While achieving a modest gross profit, the company continued to report negative net income. However, it successfully curtailed losses by 85% during the year.

During the same period, Argo announced the sale of its data center in Mirabel, Canada.

In March, the firm finalized an agreement to divest its Mirabel, Quebec data center for $6.1 million. Concurrently, it released monthly mining output figures, indicating a 21% month-on-month decrease in daily Bitcoin production. The completion of this transaction by Argo's London branch, alongside the issuance of over 460,000 new ordinary shares, marked strategic moves in optimizing the company's operations.

Argo, listed on both the London Stock Exchange (LSE) under the ticker ARB and NASDAQ under the ticker ARBK, continues to navigate the cryptocurrency mining landscape with resilience and strategic foresight.

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