Argo Blockchain PLC Announces Operational Update in October

Operational update October 2022

LONDON, UK / ACCESSWIRE / November 8, 2022 / Argo Blockchain plc, a global leader in cryptocurrency mining (“Argo” or the “Company”) (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for October 2022.

During the month of October, Argo mined 204 Bitcoin or Bitcoin Equivalents (collectively, BTC) compared to 215 BTC in September 2022. The decrease in BTC mined was primarily due to a significant increase in Bitcoin network difficulty in October compared to September.

As previously announced, the company sold 3,843 new boxed Bitmain S19J Pro machines representing the last batch of the original Bitmain order scheduled for installation in October 2022. Accordingly, the company’s total hash rate capacity continues to be 2.5 EH/s .

As of October 31, 2022, the company held 138 Bitcoin, of which 119 were BTC equivalents.

Based on daily exchange rates and cryptocurrency prices during the month, mining revenue in October amounted to £3.55 million. [$4.00 million*] (September 2022 £3.78 million [$4.27 million*]).

Argo generated this income with a Bitcoin and Bitcoin equivalent mining margin of 32% for the month of October (September 2022: 25%).

In addition, the company repaid $6.7 million previously outstanding under the BTC-backed loan with Galaxy Digital. This is consistent with the company’s risk management strategy and reduces balance sheet exposure to downside BTC price risk.

The company also wants to respond to media reports falsely claiming that Hydro-Québec, Quebec’s public power utility, has proposed to stop supplying electricity to existing mining operations. The company has spoken with representatives from Hydro-Québec and the city of Baie-Comeau, and is confident that its current access to electricity at the two Quebec facilities will continue for the foreseeable future.

Argo continues to engage in financing discussions, as announced on October 31, 2022, and will update investors accordingly.

Non-IFRS measures

Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure that is not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin have limitations as an analytical tool. In particular, Bitcoin and Bitcoin Equivalent Mining Margin excludes impairment of mining equipment and therefore does not reflect the full cost of our mining operations, and it also excludes the effect of fluctuations in the value of digital currencies and realized losses on the sale of digital assets, which affect our IFRS gross profit. This measure should not be considered as an alternative to gross margin determined in accordance with IFRS, or other IFRS measures. This measure is not necessarily comparable to similar titles used by other companies. As a result, you should not consider this measure in isolation from, or as a replacement analysis for, our gross margin as determined under IFRS.

The table below shows a reconciliation of Bitcoin Gross Margin and Bitcoin Equivalent Mining Margin, the most directly comparable IFRS measure, for the months of September 2022 and October 2022.

(1) Due to unfavorable changes in fair value of BTC, there was a loss on the change in fair value of digital currencies in September 2022 and October 2022.

* Dollar values ​​translated from pounds sterling to US dollars using the noon buying rate of the Federal Reserve Bank of New York on current dates

Inside information and forward-looking statements

This announcement contains inside information and includes forward-looking statements that reflect the current views, interpretations, beliefs or expectations of the Company or, as applicable, the Board of Directors with respect to the Company’s financial results, business strategy and management’s plans and objectives for future operations. These statements include forward-looking statements both with respect to the company and the sector and industry in which the company operates. Statements that include the words “expects”, “intends”, “plans”, “believes”, “projects”, “anticipates”, “will”, “goals”, “goals”, “may”, “would”, “could”, “continue”, “estimate”, “future”, “possibility”, “potential” or, in each case, their negative and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements deal with matters that involve risk and uncertainty because they relate to events that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Consequently, there are or will be important factors that may lead to the company’s actual results, prospects and results deviating significantly from those stated in these statements. In addition, even if the Company’s actual results, prospects and performance are consistent with the forward-looking statements contained in this document, these results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to any obligations under the Prospectus Regulation, the Market Abuse Regulation, the Listing Rules and the Disclosure and Transparency Rules, and except as required by the FCA, the London Stock Exchange, the City Code or applicable laws and regulations, the Company undertakes no obligation publicly to update or review any forward-looking statement, 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 filings that the Company files from time to time with the United States Securities and Exchange Commission and the United Kingdom 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 (LSE:ARB; NASDAQ:ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With its flagship mining facility in Texas, and offices in the US, Canada and the UK, Argo’s global, sustainable operations are powered primarily by renewable energy. In 2021, Argo became the first climate-positive cryptocurrency mining company, signing the Crypto Climate Accord. Argo also participates 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 the cryptocurrency markets. For more information, visit www.argoblockchain.com.

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SOURCE: Argo Blockchain PLC