Argo Blockchain Plc (ARBK) produced 179 Bitcoins in June 2022

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Argo Blockchain plc, a world leader in cryptocurrency mining, (NASDAQ: ARBK)is pleased to provide the following operational update for June 2022.

During the month of June, Argo mined 179 Bitcoins or Bitcoin equivalents (together, BTC) compared to 124 BTC in May 2022. The increase in mined BTC is mainly due to an increase in total hashrate capacity and greater availability of the Helios installation compared to the previous month.

Based on daily exchange rates and cryptocurrency prices during the month, mining revenue in June was €3.38 million. [$4.35 million*] (May 2022: €3.07 million [$3.89 million*]).

Argo generated this revenue with a 50% bitcoin and bitcoin equivalent mining margin for the month of June (May 2022: 55%)¹. This reduction in mining margin is mainly due to the lower price of Bitcoin and higher electricity costs at Helios.

As of June 30, 2022, the Company held 1,953 bitcoins, including 210 BTC equivalents.

(1) Bitcoin and Bitcoin equivalent mining margin for May 2022 was previously 62%; however, certain fee invoices for Helios had not been received and had not been included in this earlier calculation.

Funding Update

During the month of June, the Company sold 637 Bitcoins at an average price of around $24,500. The proceeds were used to fund operating expenses and growth capital, as well as to reduce obligations under a BTC-backed loan agreement with Galaxy Digital. This is in line with the company’s risk management strategy that has been in place since January 2022. Throughout 2022, the company sold a significant portion of monthly Bitcoin production, steadily reducing its exposure to its back-to-back loan. the BTC and strengthening its balance. sheet. As of June 30, 2022, the Company had an outstanding balance of $22 million under the BTC-backed loan. The Company is confident that it has sufficient liquidity to avoid any potential liquidation of the BTC-backed loan if the price of Bitcoin continues to decline.

Since the fourth quarter of 2021, the Company has been using derivatives to limit downside risk. Additionally, in June 2022, the Company hired a full-time derivatives trader to strengthen its internal risk management and treasury capabilities.

Helios Update

During the month of June, the delivery and installation of the Company’s S19J Pro machines ordered from Bitmain continued according to the schedule established in September 2021. As of June 30, 2022, the Company has paid more than 95% of the total amount of the purchase. price of Bitmain machines, which includes rebates received following the fall in the price of Bitcoin. During the month of June, the company increased its total hashrate capacity to 2.2 PE/s. The company remains on track to install all 20,000 machines purchased from Bitmain by October 2022.

In addition, the Company continued to make progress in executing its machine exchange agreement with Core Scientific. As of June 30, 2022, 5,000 S19J Pro machines have been delivered and installed under this agreement.

“Ongoing efforts to significantly improve Argo’s mining operations are reflected in this month’s numbers and our increased hash rate,” said Peter Wall, CEO of Argo. “These numbers, along with our continued installations of the S19J Pro machines, put us in a strong position when it comes to our mining capacity.

“We have seen positive results from our risk management strategy through which we have reduced the company’s exposure to its BTC-backed loan, and we have hired a full-time derivatives trader. We believe the company is well positioned to navigate current market conditions and further increase our efficiency.”

Non-IFRS Measures

Bitcoin and Bitcoin Equivalent Mining Margin is a non-IFRS financial measure. We believe Bitcoin and Bitcoin Equivalent Mining Margin have limitations as an analytical tool. In particular, Bitcoin and Bitcoin equivalent mining margin excludes depreciation of mining equipment and therefore does not reflect the full cost of our mining operations, and it also excludes the effects of fluctuations in the value of digital currencies and losses. made on the sale of digital mining equipment. assets, which affect our IFRS gross profit. This measure should not be considered an alternative to gross margin determined in accordance with IFRS or other IFRS measures. This measure is not necessarily comparable to similarly titled measures used by other companies. Accordingly, you should not consider this measure in isolation or as an alternative analysis of our gross margin as determined in accordance with IFRS.

The following table provides a reconciliation of gross margin to Bitcoin and Bitcoin Equivalent Mining Margin, the most directly comparable IFRS measure, for the months of May 2022 and June 2022.

(1) Certain fee invoices for Helios had not been received and could not be included in earlier calculations for: Gross (loss) (previously reported May 2022 at £11,719,569/$14,650,191 ), Gross Margin (previously reported in May 2022 to be 377%), Mining Profit (previously reported in May 2022 to be £1,926,383/$2,408,099) and Mining Margin in Bitcoin and Bitcoin Equivalent (previously reported reported in May 2022 as 62%).

(2) Due to adverse changes in the fair value of Bitcoin and Bitcoin equivalents in May 2022 and June 2022, there was a loss on change in fair value of digital currencies.

* Dollar values ​​converted from British Pounds to US Dollars using the Federal Reserve Bank of New York’s noon buying rate on applicable dates

Inside information and forward-looking statements

This announcement contains inside information and includes forward-looking statements which reflect the current opinions, interpretations, beliefs or expectations of the Company or, as applicable, of the Directors regarding the financial performance, business strategy and management plans and objectives of the Company for future operations. . These statements include forward-looking statements regarding both the Company and the sector and industry in which the Company operates. Statements that include the words “expects”, “intends”, “plans”, “believes”, “projects”, “anticipates”, “will”, “targets”, “aims”, “may “, “would”, “could”, “continue”, “estimate”, “future”, “opportunity”, “potential” or, in each case, negatives thereof, and similar statements of a future or forward-looking nature identify statements forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties because they relate to events that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Accordingly, there are or there will be important factors that could cause the Company’s actual results, prospects and performance to differ materially from those set forth in such statements, and even if the Company’s actual results, prospects and performance are consistent with the forward-looking statements ives contained herein, these results may not be indicative of results for subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to any obligations under the Prospectus Rules, the Market Abuse Rules, the Listing Rules and the Disclosure and Transparency Rules and unless required by the FCA, London Stock Exchange, City Code or applicable laws and regulations, the Company undertakes no public obligation to update or review any forward-looking statements, whether as a result of new information, future developments or otherwise. For a more complete discussion of factors that could cause our actual results to differ from those described in this announcement, please refer to the Company’s filings from time to time with the United States Securities and Exchange Commission and the UK Financial Conduct Authority, including the section entitled “Risk Factors” in the company’s registration statement on Form F-1.

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About Argo:

Argo Blockchain plc is a dual-listed blockchain technology company (LSE: ARB; NASDAQ: ARBK) focused on large-scale cryptocurrency mining. With its flagship mining facility in Texas and offices in the United States, Canada and the United Kingdom, Argo’s sustainable global operations are primarily powered by renewable energy. In 2021, Argo became the first climate-positive cryptocurrency mining company and a signatory to the Crypto Climate Accord. Argo is also involved in several Web 3.0, DeFi and GameFi projects through its Argo Labs division, further contributing to its business operations, as well as the development of cryptocurrency markets. For more information, visit www.argoblockchain.com.

This information is provided by RNS, the information service of the London Stock Exchange. RNS is authorized by the Financial Conduct Authority to act as a primary information provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For more information, please contact [email protected] or visit www.rns.com.

THE SOURCE: Argo Blockchain PLC

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