Argo Blockchain Reports $18.8m Net Loss Despite Increased Mining Efforts

Argo Blockchain reports net loss in H1 2023

Despite efforts to reduce debt and operational expenses, Argo Blockchain recorded a net loss of over $18 million in the first half of 2023. The company decreased non-mining operational costs by 21% in Q2, resulting in a positive Adjusted EBITDA of $1.0 million for the quarter. However, revenue dropped by 31% while achieving a 1% growth in Bitcoin mining operations. Argo’s debt was reduced by $4 million in the quarter, bringing the cumulative debt decrease to $68 million from June 2022 to June 2023. The company attributes the revenue decline to the fall in Bitcoin price and increased mining difficulty.

Main breakdowns:

Net loss of over $18 million in H1 2023, a decrease from H1 2022
Reduced non-mining operational costs by 21% in Q2 2023
1% growth in Bitcoin mining operations during the period
31% decrease in revenue in H1 2023 compared to H1 2022
Debt reduced by $4 million in Q2, cumulative decrease of $68 million since June 2022

Argo’s plans and achievements

Argo Blockchain is currently in advanced discussions for divesting non-core assets and constantly evaluating debt reduction strategies. The company achieved a mining margin of 42% in H1 2023 and enhanced liquidity through transactions with Galaxy Digital Holdings Ltd. In Q2 2023, Argo generated $1.1 million in power credits and expects higher credit generation in Q3 due to a heat wave in Texas.

Bitcoin halving and impact

The upcoming Bitcoin halving event in early Q2 2024 is expected to reduce the block reward from 6.25 to 3.125 BTC. This will increase Bitcoin scarcity and potentially impact its price due to supply and demand economics. At the time of writing, Bitcoin is valued at $27,542, experiencing a 5% increase in 24 hours.

Hot Take:

Despite the net loss in H1 2023, Argo Blockchain has made efforts to reduce expenses and debt while achieving growth in Bitcoin mining operations. The upcoming Bitcoin halving event presents an opportunity for the cryptocurrency’s value to increase. Argo’s focus on divestment and debt reduction strategies positions the company for future profitability.