RNS Number : 2860O

Argo Blockchain PLC

07 October 2021

Press Release

07 October 2021

Argo Blockchain PLC

("Argo" or the "Company")

September 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 September.

During the month of September, Argo mined 165 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 206 BTC in August. This brings the total amount of BTC mined year-to-date to 1479 BTC.

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in September amounted to GBP5.50 million ($7.59 million*) (August 2021: GBP6.83 million ($9.43 million*)). Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 84% for the month of September (August 2021: 86%). The Company has maintained consistent Bitcoin and Bitcoin Equivalent Mining Margins despite increases in network difficulty since July 2021.

At the end of September, the Company owned 1836 Bitcoin or BTC equivalent.

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 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 August and September 2021.

                                           Month Ended 31 August          Month Ended 30 September 
                                                    2021                            2021 
                                     ---------------------------------  --------------------------- 
                                                     GBP             $            GBP             $ 
 Gross Profit                                  10,427,53    14,396,250        108,284       149,497 
    Gross Margin(1)                                 145%          145%             2%            2% 
 Depreciation of mining 
  equipment                                      846,382     1,168,515        770,006     1,063,070 
 Charge in fair value of 
  digital currencies                         (4,736,507)   (6,539,222)      4,130,925     5,703,155 
 Realised profit on sale 
  of digital currencies                        (305,366)     (421,588)       (74,582)     (102,968) 
 Crypto-currency management 
  fees                                         (327,652)     (452,356)      (298,136)     (411,607) 
 Mining Profit                                 5,904,388     8,151,599      4,636,497     6,401,147 
    Bitcoin and Bitcoin Equivalent 
     Mining Margin                                   86%           86%            84%           84% 
-----------------------------------  -------------------  ------------  -------------  ------------ 

(1) Due to favourable changes in fair value of Bitcoin and Bitcoin Equivalents in August and September 2021, gross profit exceeded revenue in both periods.

*Dollar values translated from pound sterling into U.S. dollars at the rate of GBP1.00 to $1.38, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2021.

This announcement contains inside information.

For further information please contact:

 Argo Blockchain 
 Peter Wall                            via Tancredi +44 203 434 2334 
  Chief Executive 
 finnCap Ltd 
 Corporate Finance 
  Jonny Franklin-Adams 
  Tim Harper 
  Joint Corporate Broker 
  Sunila de Silva                      +44 207 220 0500 
 Tennyson Securities 
 Joint Corporate Broker 
  Peter Krens                          +44 207 186 9030 
 OTC Markets 
 Jonathan Dickson                      +44 204 526 4581 
  jonathan@otcmarkets.com               +44 7731 815 896 
 Tancredi Intelligent Communication 
  UK & Europe Media Relations 
 Emma Valgimigli 
  Emma Hodges                          +44 7727 180 873 
  Salamander Davoudi                    +44 7861 995 628 
  argoblock@tancredigroup.com           +44 7957 549 906 

About Argo:

Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB and on the Nasdaq Global Select Market in the United States under the ticker: ARBK.

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October 07, 2021 02:00 ET (06:00 GMT)

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