Argo Blockchain PLC (ARBKF) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Revenue: $7.5 million in Q3 2024; $36.7 million for the nine months ended September 30, 2024.

  • Bitcoin Mined: 123 Bitcoin in Q3 2024, approximately 1.3 Bitcoin per day.

  • Mining Margin: 8% in Q3 2024; 33% for the nine months ended September 30, 2024.

  • Net Loss: $6.3 million for Q3 2024; $39.2 million for the nine months ended September 30, 2024.

  • Adjusted EBITDA: Negative $2.1 million for Q3 2024; positive $3.9 million for the nine months ended September 30, 2024.

  • Debt Reduction: Reduced by $12.4 million in Q3 2024, including full repayment of the Galaxy loan.

  • Cash and Bitcoin Holdings: $2.5 million in cash and four Bitcoin equivalents at the end of Q3 2024.

  • Non-Mining Operating Expenses: Decreased by approximately 12% year-over-year.

Release Date: November 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Argo Blockchain PLC (ARBKF) successfully reduced its debt by $12.4 million during the quarter, including the full repayment of the Galaxy loan, which strengthens its balance sheet.

  • The company generated $36.7 million in revenue for the nine months ended September 30, 2024, reflecting growth compared to the same period last year.

  • Argo Blockchain PLC (ARBKF) is exploring a High Performance Computing (HPC) expansion at Baie-Comeau, which could diversify revenue streams and tap into high-growth markets such as AI.

  • The company reported a decrease in non-mining operating expenses by approximately 12% year-over-year, indicating a focus on cost discipline and operational streamlining.

  • The class action lawsuit, Murphy versus Argo Blockchain, was dismissed with prejudice and without leave to amend, removing a legal overhang for the company.

Negative Points

  • Argo Blockchain PLC (ARBKF) reported a net loss of $6.3 million for the quarter and $39.2 million for the nine months ended September 30, 2024.

  • The company's mining margin for Q3 was only 8%, a significant drop from 58% in the same period last year, due to lower Bitcoin prices and higher energy costs.

  • Revenue for Q3 decreased to $7.5 million from $12.4 million in Q2 2024 and $10.4 million in Q3 2023, primarily driven by lower Bitcoin production and hash prices.

  • The hosting agreement at Helios will not be renewed beyond December 2024, affecting the hosted fleet of 23,000 S19J Pro Miners, and the company is exploring alternative arrangements.

  • Adjusted EBITDA for Q3 was negative $2.1 million, reflecting challenging mining conditions and a decrease from $2.6 million in Q2 2024.