UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
_____________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January, 2023
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
9th Floor
16 Great Queen Street
London WC2B 5DG
England
(Address of principal executive office)
_____________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F
☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
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Exhibit
No.
1
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Description
December
Operational Update dated 11 January 2023
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Press Release
11 January 2023
Argo Blockchain plc
("Argo" or "the Company")
December 2022 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 2022.
During the month of December, Argo mined 147 Bitcoin or Bitcoin
Equivalents (together, BTC) compared to 198 BTC in November 2022.
The decrease in BTC mined was primarily due to the curtailment of
mining operations at the Helios facility in Dickens County, Texas
in response to the widespread winter storm that impacted much of
the United States in late December. The Helios facility draws power
from the Texas grid and can reduce electricity usage during extreme
weather events or times of stress on the grid. During the winter
storm, Argo joined other Texas Bitcoin miners in reducing power
usage by an estimated 1,500 MW, according to the Texas Blockchain
Council. Argo has always committed to being a good community
partner, and the Company is proud to have contributed to the
stability of the Texas power grid during the winter
storm.
As of 31 December 2022, the Company held 141 Bitcoin, of which 116
were Bitcoin Equivalents.
The Company's total hashrate capacity continues to be 2.5
EH/s.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in December amounted to $2.49
million [£2.07 million*] (November 2022 $3.46 million
[£2.94 million*].
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of 48% for the month of December (November 2022:
29%).
Sale of Helios to Galaxy
As previously announced on 29 December 2022, the Company closed on
a series of agreements with Galaxy Digital Holdings Ltd. (TSX:
GLXY) ("Galaxy") to sell its Helios facility to Galaxy for $65
million (£54 million), refinance existing equipment financing
loans with a new asset-backed loan from Galaxy in the amount of $35
million (£29 million), and host Argo's mining machines at
Helios. The transactions improve the Company's balance sheet and
liquidity by reducing total indebtedness by $41 million (£34
million) and improving its cash position. As of 31 December 2022,
pro forma for the transactions, the Company's total debt was
approximately $79 million (£65 million), and its bank balance
was approximately $20 million (£16 million).
The transactions with Galaxy also streamline the Company's
operations. Argo maintains ownership of its entire fleet of mining
machines, and Galaxy will host the fleet of Bitmain S19J Pro
machines at Helios. Additionally, Argo maintains ownership of its
two data centers in Quebec, which have a combined power capacity of
approximately 20 MW and attractive power prices.
In connection with the sale of Helios and shifting priorities for
the Company, Justin Nolan (Chief Growth Officer) and Theodore
Papadakis (VP Data Center Operations) have left Argo. Argo is
grateful for their contributions to the Company during their tenure
and wishes them well in future endeavours.
Management Commentary
Argo's Chief Executive Peter Wall said, "While our mining results
for December were lower than anticipated, the primary driver was
the winter storm which led us to curtail operations at Helios. We
made this decision in order to not only reduce power usage on the
grid, but also to prioritise the needs of the local community and
safety of our Helios employees. After the winter storm and
associated freezing temperatures had subsided, we safely brought
Helios back online and resumed operations."
Commenting on the Galaxy transaction, Wall said, "These agreements
with Galaxy mark the beginning of a new chapter for Argo. We built
a world-class mining facility at Helios, and I believe that Galaxy
has the right team and resources to build upon the foundation that
Argo established. This deal also allows Argo to continue our mining
operations, both at Helios as a hosted customer, as well as at our
owned-and-operated facilities in Quebec. I look forward to sharing
more details on our growth strategy for 2023 and beyond in due
course."
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 has 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 realised 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 gross margin to
Bitcoin and Bitcoin Equivalent Mining Margin, the most directly
comparable IFRS measure, for the months of November 2022 and
December 2022.
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Month Ended 30 November 2022
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Month Ended 31 December 2022
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£(000s)
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$(000s)
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£(000s)
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$(000s)
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Gross profit/(loss)
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(1,462)
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(1,724)
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(704)
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(847)
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Gross Margin
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(50%)
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(50%)
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(34%)
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(34%)
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Non mining revenue
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(33)
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(39)
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(25)
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(30)
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Depreciation of mining equipment
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1,849
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2,180
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1,795
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2,159
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Change in fair value
of digital currencies(1)
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1
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1
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(96)
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(116)
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Realised (profit)/loss on sale of digital currencies
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493
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581
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20
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24
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Mining Profit
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848
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1,000
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990
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1,190
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Bitcoin and Bitcoin Equivalent Mining Margin
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29%
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29%
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48%
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48%
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(1) Due to unfavourable changes in the fair value of BTC there was
a loss on the change in fair value of digital currencies in
November 2022. Due to favourable changes in the fair value of BTC
there was a gain on the change in fair value of digital currencies
in December 2022.
* 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
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes
forward-looking statements which reflect the Company's or, as
appropriate, the Directors' current views, interpretations, beliefs
or expectations with respect to the Company's financial
performance, business strategy and plans and objectives of
management 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 which
include the words "remains confident", "expects", "intends",
"plans", "believes", "projects", "anticipates", "will", "targets",
"aims", "may", "would", "could", "continue", "estimate", "future",
"opportunity", "potential" or, in each case, their negatives, and
similar statements of a future or forward-looking nature identify
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, including the risk
that the Company may receive the benefits contemplated by its
transactions with Galaxy, the Company may be unable to secure
sufficient additional financing to meet its operating needs, and
the Company may not generate sufficient working capital to fund its
operations for the next twelve months as contemplated.
Forward-looking statements are not guarantees of future
performance. Accordingly, there are or will be important factors
that could cause the Company's actual results, prospects and
performance to differ materially from those indicated 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, those 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 Rules, 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 law 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 Company makes 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.
For further information please contact:
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Argo Blockchain
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Peter Wall
Chief
Executive
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ir@argoblockchain.com
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finnCap Ltd
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Corporate
Finance
Jonny Franklin-Adams
Seamus Fricker
Joint
Corporate Broker
Sunila de Silva
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+44 207 220 0500
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Tennyson Securities
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Joint
Corporate Broker
Peter Krens
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+44 207 186 9030
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Tancredi Intelligent Communication
UK
& Europe Media Relations
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|
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Salamander Davoudi
Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed
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argoblock@tancredigroup.com
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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 mining facilities in Quebec, mining operations in
Texas, and offices in the US, Canada, and the UK, Argo's global,
sustainable operations are predominantly powered by renewable
energy. In 2021, Argo became the first climate positive
cryptocurrency mining company, and a signatory to 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.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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Date:
11 January, 2023
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ARGO BLOCKCHAIN PLC
By:
Name:
Peter Wall
Title:
Chief Executive Officer
Name:
David Zapffe
Title:
General Counsel
|
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