Argo Blockchain PLC (ARB.L) December 2021 Operational Update

Operational Update

Argo Blockchain plc, a global leader in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK), is pleased to provide the following operational update for December 2021.

During the month of December, Argo mined 214 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 185 BTC in November. This brings the total amount of BTC mined in 2021 to 2,045 BTC.

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in December amounted to £7.82 million [$10.55 million*] (November 2021: £8.29 million [$11.20 million*]).

Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 83% for the month of December (November 2021: 86%).

At the end of December, the Company owned 2,595 Bitcoin or Bitcoin Equivalent.

Helios Mining Facility Update

The Company is also pleased to provide the following update on the construction of its 200MW flagship cryptocurrency mining facility, Helios, in Dickens County, Texas. The construction of Argo’s facility remains on time and the main structure, outside facade, and roof have now been completed. The next phase of construction and build out of essential infrastructure are ongoing, with a projected completion date in the first half of 2022.

Peter Wall, Chief Executive of Argo and interim Chairman, said: “2021 has been a transformational year for both Argo and the cryptocurrency sector. We began development on our mining facility in Texas and we took Argo to NASDAQ. Our efforts allowed us to expand our global presence and we look forward to the year ahead and the opening of our mining facility in Dickens County, Texas”.

Non-IFRS Measures

Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure 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 the depreciation of mining equipment and so 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 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 similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, our gross margin as determined in accordance with IFRS.

The following table shows a reconciliation of Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the months of November and December 2021.

(1) Due to unfavourable changes in fair value of Bitcoin and Bitcoin Equivalents in November and December 2021 there was a significant loss on change in fair value of digital currencies.

(2) The cryptocurrency management fees include the settlement amount with Celsius and as such are higher than normal in December 2021.

*Dollar values translated from pound sterling into U.S. dollars using the noon buying rate of the Federal Reserve Bank of New York as at the applicable dates.

For further information please contact:

Argo Blockchain

Peter Wall

Chief Executive

via Tancredi +44 203 434 2334

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.