Digital asset mining outfit, Argo Blockchain unveiled its “Interim Half Year Results” which highlighted a loss of $18.8 million during the first half of the current year, decreasing the total losses from the previous $39.6 million to $75 million. The reduction in losses, despite challenging circumstances in the crypto market, is seemingly a testament to Argo Blockchain’s resilience.
The bearish market and plunging prices of crypto assets, primarily spearheaded by Bitcoin, are significant contributors to these financial troughs. Following the collapse of Terra network, the BTC price plummeted, vaporizing billions from the total market cap and causing the company’s revenues to shrink by 21% compared to the previous year’s performance.
Yet, the firm showed signs of financial vitality. Argo Blockchain managed to rack up $24 million in revenue with a balance sheet reflecting 46 BTC in assets and a cash balance of $9.1 million. While part of the money was organically raised, $7.5 million came from a share placement offered to investors in July.
There were whispers about Argo’s survivability in the market, due to a debt profile of $143 million as of June 2022. However, the company has managed to reduce its debt to $75 million – a remarkable reduction of $68 million – paving the way for new investment opportunities. Furthermore, non-mining operational costs were shaved off by 21% in Q3 compared to Q2 2022.
Argo Blockchain made some strategic moves last year during the harsh crypto winter, which saw Bitcoin losing over half of its value. The company faced threats of bankruptcy and responded by selling its Helios Mining Center for $65 million to Galaxy Digital and refinancing a $35 million three-year backed loan.
Matthew Shaw, the Chairman of Argo Blockchain highlighted the significance of these transactions, stating that they reduced total indebtedness by $41 million and allowed Argo to simplify its operating structure.
Moreover, Argo Blockchain plans to boost its hashrate from 2.6EH/s to 2.8EH/s using an additional 1,242 BlockMiner machines. Furthermore, as part of its debt reduction plan, the firm is considering the sale of certain non-core assets.
In conclusion, Argo Blockchain’s financials reflect the turbulence experienced by the crypto market. Nevertheless, its strategic decisions and operational restructuring suggest a determination to remain a contender in the crypto mining industry.
Source: Cryptonews
