Argo Blockchain Turns £194M in Loss as BTC Worth Tumbled in 2022

Argo Blockchain Announces Financial Results for 2022
The financial figures for 2022 were revealed by Argo Blockchain (LSE: ARB; NASDAQ: ARBK). The company’s revenue at the end of the year was £47.4 million ($58.6 million), a 36% decline. A drop in the value of Bitcoin and an increase in the worldwide hash rate were blamed for this fall. In 2022, the corporation mined 2,156 Bitcoins, a 5% reduction, although its capacity to hash rates climbed by 55%. It had 141 Bitcoins at the end of the year, 116 of which were Bitcoin Equivalents.

Listed in both London and New York, Argo’s adjusted EBITDA at closure in 2022 was £1 million ($1.2 million), down from £55 million ($74.2 million) the year before. The mining margin decreased from 84% to 54% in the previous year. The official figures show that the company’s net loss was £194.2 million ($240.2 million), primarily due to losses from its divestitures, asset impairment, and the declining value of cryptocurrencies.

“Argo has emerged stronger and in a much more secure financial position having navigated difficult market conditions in both the crypto sector and the global economy in the second half of 2022,” stated Seif El-Bakly, Interim CEO of Argo Blockchain. Meanwhile, Argo escaped bankruptcy last year thanks to a strategic agreement with Mike Novogratz’s Galaxy Digital Holdings, Ltd., a financial company that specialises in digital assets. In order to restructure its current debts, it sold Galaxy its Helios facility for £53 million ($65 million). In addition, Argo’s financial situation and overall debt were also improved by the sale, bringing its total debt down to £33 million ($41 million).

“Following the build of Helios and the strategic transaction with Galaxy, we have streamlined our operations to maximise efficiency and increase our hash rate while preserving our mining capacity through our Hosting Agreement,” El-Bakly stated. “On the basis of these foundations, we continue to work diligently on the next stage of Argo’s growth and development, with the aim of delivering long-term value to our shareholders.”