Argo Blockchain PLC Disclosure of inside information (4333R)
05 November 2021 - 06:00PM
UK Regulatory
TIDMARB
RNS Number : 4333R
Argo Blockchain PLC
05 November 2021
Press Release
5 November 2021
Argo Blockchain PLC
("Argo" or "the Company")
Disclosure of inside information
On November 4, 2021, representatives of Argo Blockchain (LSE:
ARB; Nasdaq: ARBK) ("Argo") held a meeting with Anthony Coyle in
which they discussed Argo Blockchain's business. During the
meeting, these representatives intended to review and explain
previously published or publicly available information regarding
Argo, but inadvertently disclosed certain information that could be
viewed as material non-public information under US securities laws
or inside information under UK securities laws (collectively,
"MNPI"). Mr. Coyle subsequently published a report of the
conversation on Twitter that included the MNPI. Argo is publishing
this disclosure to provide and clarify such information to
investors. Specifically:
-- Mr. Coyle wrote that Argo claimed a 25% uplift in hash-rate
resulting from the use of immersion cooling technology. Argo does
not have sufficient data to make such a claim, and did not claim
this. Argo did reiterate prior public statements that immersion
technology can allow mining machines to run at greater sustained
processing speeds and can extend the lives of older machines that
are, or are becoming, no longer profitable using conventional
air-cooling technology, which in both cases could significantly
improve machine profitability and return on investment.
-- Argo representatives disclosed that, by virtue of the
company's strategy of evaluating crypto currency other than
Bitcoin, Argo could find revenue from such alternative currency
comprising up to 20% of total revenue acceptable. This statement
was not intended as a forecast, but rather to provide directional
insight into the potential level of revenue diversification that
Argo currently believes could be acceptable.
-- Argo representatives disclosed that Argo has seen a 500%
return on its investment in certain Equihash machines purchased in
June 2020. This statement was made to illustrate that return on
investment can vary greatly, and this was a particularly favorable
example. For clarity, Argo hereby notes that the purchase in
question was for a total of approximately US$474,000, and that the
return on investment for this purchase was not in itself material
to Argo's business.
-- Argo representatives disclosed in a forward-looking statement
that the total cost to build and kit out an 800 megawatt mining
facility in Texas could be US$1.5-2.0 billion. This cost range is
based on numerous assumptions, including the type of mining
machines to be installed in the facility, the mix of owned and
hosted machines, the cost of raw materials, labour and power
required to construct the facility, the timing of build-out and
machine purchase, and other factors. The actual costs for Argo to
build and kit out the Helios facility in Texas will also depend on
the extent to which Argo decides to fully develop the property,
which has not yet been determined. Each of the foregoing
assumptions is subject to numerous inherent risks and
uncertainties, and, as a result, future results could differ
materially from the estimated range above.
In addition, Mr. Coyle's report includes certain references to
views of Argo representatives that are forward-looking statements,
and do not represent the views of Argo, including statements
regarding the future price of Bitcoin, future profitability of
mining as a function of power cost, future of cryptocurrency
business cycles, Argo's ability to remain profitable through these
cycles, and similar matters. Argo notes that these statements are
subject to numerous uncertainties and risks, including those
related to the future value of cryptocurrency, regulatory
developments affecting the cryptocurrency and blockchain
industries, future cost and availability of power and other
resources required to mine cryptocurrency, and supply chain
constraints.
For a discussion of the risks and uncertainties relating to
forward looking statements made herein, please refer to Argo's
filings with the US Securities and Exchange Commission, including
the F-1 Registration Statement filed in connection with Argo's US
initial public offering, and its prospectus filed with the UK
Financial Conduct Authority. Actual future events and results could
differ materially from those reflected the statements discussed
herein.
This announcement contains inside information.
For further information please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203 434 2334
Chief Executive
------------------------------
finnCap Ltd
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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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