Argo Blockchain PLC Announces March 2022 Operational Update | 2022-04-08 | Press

LONDON, UK / ACCESSWIRE / April 8, 2022 / Argo Blockchain plc, (“Argo” or “the Company”) a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for March 2022.

Operational Update

During the month of March, Argo mined 163 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 135 BTC in February 2022.

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in March amounted to £5.22 million [$6.92 million*] (February 2022: £4.15 million [$5.58 million*]).

Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 74% for the month of March (February 2022: 71%).

At the end of March, the Company owned 2,700 Bitcoin, of which 259 were BTC equivalents.

Appointment of Chief Operating Officer

Argo is also pleased to announce the appointment of Seif El-Bakly as Chief Operating Officer. Seif has over 16 years’ experience in the capital markets and trading sectors. Prior to joining Argo, Seif founded a fintech startup and worked for TMX Group, where his responsibilities included leading the strategy and business management efforts for the entire Markets Business. Fluent in three languages, Seif graduated from Concordia University’s John Molson School of Business and is a CFA Charterholder.

Update on Helios Facility

The Company is also pleased to provide the following update on the construction of its 200MW flagship cryptocurrency mining facility, Helios, in Dickens County, Texas. The Company has continued to make significant progress on this stage of construction and expects mining operations to commence at Helios in Q2 2022. Argo has successfully installed critical equipment, including immersion pumps, air coolers, transformers, power distribution units, and pallet racks. Additionally, the fiber internet connection to Helios has now been completed.

Participation in April Conferences

The Company is also pleased to announce that Chief Executive, Peter Wall, participated in a panel discussion entitled “Mining the Public Markets” at the Bitcoin 2022 conference in Miami on 7 April. He will also be participating in a panel discussion entitled “Sustainability & Energy Efficiency of Bitcoin Mining” at the virtual Cowen Bitcoin Mining Summit on 12-13 April.

Peter Wall, Chief Executive and interim Chairman, said: “We are delighted to welcome Seif as our Chief Operating Officer. He will play a critical role in bolstering Argo’s senior leadership team and brings a wealth of experience in the trading and capital markets sectors to Argo. As we approach the opening of our Helios facility and significantly scale up our owned and operated mining operations, Seif will be integral in driving the operational performance of Argo.”

Non-IFRS Measures

Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin 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 gross margin to Bitcoin and Bitcoin Equivalent Mining Margin, the most directly comparable IFRS measure, for the months of February 2022 and March 2022.