Argo Blockchain (LSE: ARB; NASDAQ: ARBK), a cryptocurrency mining company, has released its 2023 financial results, revealing a year marked by strategic adjustments amidst industry challenges. However, despite achieving a modest gross profit, net income was negative for another consecutive year.
The company mined 1,760 Bitcoin throughout the year, averaging 4.8 Bitcoin per day, despite facing increased global hashrate and network difficulty.
Annual revenues reached $50.6 million, a 14% decline from the previous year, as the mining margin decreased to 43% from 54% in 2022. However, Argo made significant strides in optimizing its operations, increasing its hash rate by 0.3 EH/s through the introduction of ePIC BlockMiners at its Quebec facilities and generating $7.2 million in power credits through strategic energy curtailment at the Helios location.
The company reported a net loss of $35.0 million for 2023, a substantial improvement from the $229.0 million loss in 2022. This was largely due to a 49% reduction in interest expenses, achieved through debt management efforts. By year-end, Argo had reduced its debt owed to Galaxy Digital to $23.5 million, with a total debt standing at $66.2 million.
“Despite a turbulent market, we have worked hard to strengthen our balance sheet and reduce Argo’s debt burden by $22 million, or 63%, and improve our cash positions,” commented Thomas Chippas, the CEO of Argo.
In early 2024, Argo successfully raised $9.9 million through a share placement with institutional investors and sold its Mirabel, Quebec data center for $6.1 million, using the proceeds to reduce debt further. Preliminary Q1 2024 results show continued growth, with 319 Bitcoin mined and revenues nearing $17 million.
Mining Operations Post-Halving
As the cryptocurrency industry continues to evolve after recent halving, Argo Blockchain remains focused on navigating challenges, optimizing operations, and positioning itself for long-term success in the competitive mining landscape.
“We exited the Bitcoin halving with a stronger balance sheet and leaner operations, and we are optimistic about the ongoing growth and development of Argo with a clear objective of delivering shareholder value,” Chippas added.
The new operating environment is not easy, however. After the fourth halving, Bitcoin recently underwent its initial difficulty adjustment, experiencing a 1.99% rise and elevating the mining difficulty to a new record. The network’s difficulty level increased from 86.39 trillion to 88.10 trillion.
