Argo Blockchain PLC is a global data center business that runs a huge and efficient crypto mining operation. Its headquarters are in London, with operations in various locations across Canada and the U.S. Argo Blockchain is a publicly listed company in the Main Market of the London Stock Exchange under the ticker ARB and formerly on the NASDAQ Global Select Market under the ticker ARBK.
History and Current Operations
Jonathan Bixby and Mike Edwards co-founded Argo Blockchain in 2017. Their vision was to create an accessible and user-friendly crypto-mining platform. Mr. Bixby is the current Executive Chair of the company, while Mr. Edwards serves as the Non-Executive director.
The company operates Bitcoin mining facilities in Quebec and Texas, primarily on renewable energy. Its business locations include the Baie Comeau facility, which consumes 15 megawatts of power and occupies 40,000 square feet. The company also operates the Mirabel facility, which occupies 30,000 square feet and consumes 5 MW of power. Its largest facility was Helios, which occupies 125,000 square feet and consumes 180 MW of power.
Strategies and Challenges in the Bitcoin Mining Sector
Like most other companies in the crypto mining sector, Argo Blockchain suffered major hardships in 2022. The low price of crypto and energy costs meant that most mining operations had to scale back significantly.
Argo Blockchain took several steps to address these challenges, including amending financing agreements, raising additional funds by selling mining equipment, and selling shares to undisclosed investors.
The company’s Helios facility was amongst the assets it sold to stay afloat. It was sold for $65 million in December 2022. Argo continues to operate 23,600 Bitmain S19J Pro mining rigs at the facility via an ongoing hosting agreement with Galaxy.
Argo Blockchain’s Financial Status
According to its half-year report for 2023, Argo had $9.1 million in cash holdings and 46 BTC as of June 2023. The report stated that they mined 947 BTC in H1 2023, an increase of just 1% during the same period in 2022.
The company’s revenues were down 31% compared to H1 20223, netting $24 million. It attributed this to the decrease in the price of Bitcoin, coupled with an increase in Bitcoin Network’s hash rate.
In its August 2023 report, Argo Blockchain reported that it mined 105 BTC at a rate of 3.4 BTC per day. This is a drop from the July 2023 numbers of 4.6 BTC per day. Mining revenue also experienced a 24% drop in August compared to July, from $3.87 to $2.97 million. According to the August report, the company held 49 BTC as of August 31, 2023.
The August report also revealed that Argo had installed 900 BlockMiner machines at its Quebec facility, representing 95 PH/s. Its total hash rate now stands at around 2.7 EH/s. Argo also revealed it would receive and deploy another 728 BlockMiners in the coming months.
Argo’s stock on the LSE under the ticker ARB has a price of £8.64 as of September 14, 2023, 12:31 PM BST. The stock day range is £8.50 – 9.00 with a 52-week range of £2.00 – 40.00. Its current market cap is £46.663M with a volume of £301,372. The stock’s all-time high was on February 15, 2021, when the stock was selling for £282.
The company has a stock listing in the United States, under the ticker ARBKF, on the OTC Markets exchange. It is priced at $0.0995 as of September 14 at 12:00 PM EDT. The 52-week high price was $0.47 per share. A return to that price-level would yield as much as 372.36% in profit.
The Bottom Line
Argo Blockchain has had to overcome numerous challenges in the current crypto market conditions. However, the executive team’s tough and smart decision-making capabilities have helped the company sail through the rough times thus far. Argo Blockchain is likely to have a revival in interest heading into 2024.
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