TIDMARB
RNS Number : 5813R
Argo Blockchain PLC
08 November 2021
Press Release
8 November 2021
Argo Blockchain PLC
("Argo" or "the Company")
October 2021 Operational Update, Mining Expansion and Board
Change
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining
(LSE: ARB; NASDAQ: ARBK), is pleased to provide the following
operational update for October 2021.
During the month of October, Argo mined 167 Bitcoin or Bitcoin
Equivalent (together, BTC) compared to 165 BTC in September. This
brings the total amount of BTC mined year-to-date to 1,646 BTC.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in October amounted to GBP7.24
million [$9.75 million*] (September 2021: GBP 5.50 million [$7.59
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of approximately 86% for the month of October
(September 2021: 84%).
At the end of October, the Company owned 2,128 Bitcoin or
Bitcoin Equivalent.
Mining Expansion
As of the end of October, the Company added an additional 220
PH/s to its total capacity, bringing the Company's total mining
capacity to 1.295 EH/s as of 31 October 2021.
Board Change
Effective today, Colleen Sullivan has resigned as a
non-executive member of the Board of Directors so that she may
focus her efforts on other professional duties. She has taken on a
new career role that does not allow her to serve as a director for
the Company and her resignation is not the result of any
disagreement with the management or Board of the Company. The
Company would like to thank Colleen for her contribution over her
tenure on the board and wish her a successful future as she
progresses in her career.
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin is a financial
measure not defined by IFRS and 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 September and October
2021.
Month Ended 30 September Month Ended 31 October
2021 2021
--------------------------------- ----------------------------
GBP $ GBP $
Gross Profit 108,284 149,497 33,060,353 44,532,296
Gross Margin(1) 2% 2% 422% 422%
Depreciation of mining
equipment 770,006 1,063,070 975,103 1,313,464
Charge in fair value of
digital currencies 4,130,925 5,703,155 (27,446,831) (36,970,882)
Realised profit on sale
of digital currencies (74,582) (102,968) - -
Cryptocurrency management
fees (298,136) (411,607) (361,578) (487,045)
Mining Profit 4,636,497 6,401,147 6,227,047 8,387,833
Bitcoin and Bitcoin Equivalent
Mining Margin 84% 84% 86% 86%
-------------------------------- --------------------- ---------- ------------- -------------
(1) Due to favourable changes in fair value of Bitcoin and
Bitcoin Equivalents in October 2021 gross profit exceeded
revenue.
*Dollar values translated from pound sterling into U.S. dollars
at the rate of GBP1.00 to $1.35, which was the noon buying rate of
the Federal Reserve Bank of New York on September 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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