Argo Blockchain Trims Debt & Costs, But Revenue Suffers!
Argo Blockchain, a leading cryptocurrency miner, has reduced its debt to $75 million in the first half of 2023, compared to $143 million at the end of June 2022. The company also reduced operating costs and expenses by 33%, while non-mining costs and expenses fell by 21% in Q2. However, revenue in H1 was significantly lower than in the first half of last year, with a pre-tax loss of $18.6 million. The company attributed this downturn to bitcoin's falling USD valuation and increased global hash rate.
Argo Blockchain will focus on strengthening its balance sheet and growing the business, emphasizing financial discipline and operational excellence.
Argo Blockchain's said a deal to raise 24 million British pounds (US$27 million) from a strategic investor has fallen through, sending the bitcoin mining company's shares tumbling as much as 72%. The London-based firm, which earlier this month signed a letter of intent to sell 87 million shares to the investor as it looked to ease liquidity pressures, didn't say why the agreement had been called off. It is working to secure other deals to provide working capital for the next 12 months. https://www.coindesk.com/business/2022/10/31/bitcoin-miner-argos-27m-fundraise-falls-through-shares-plunge/
$ARBKF - Publicly traded miner Agro Blockchain PLC spiked 5% on Monday trade, sparking interest in the company.
A change from previous close of $0.36 to $0.38 was significant for a penny stock.
In the year range, $ARBKF has traded between $0.34 - $2.15 which shows that there is more upside than downside for the stock to move in.
Starting out as a Mining-as-a-Service (MaaS) company in 2018, the Nasdaq and LSE listed company moved into mining for own account in 2019, diversified into digital blockchain infrastructure in 2020 and in 2021 did acquire 160 acres to build a 200 MW facility in Dickens County-Texas.
In May 2022, mining operations have started at the 126,000 square feet Dickens County data center.
Revenue of Agro Blockchain is poised to grow exponentially, given that from a total revenue of $1.1 million in 2018 FY it has scaled to $100.1 million in 2021 FY.
Compared to its peers $HUT (Hut 8 Mining Corp) $BITF (Bitfarms Ltd) $MARA (Marathon Digital Holding) that in the first half of 2022 have a mining margin of 61%, $ARBKF has achieved a mining margin of 71%, which is significant.
However, movement in $ARBKF is tied to pricing of $BTC Bitcoin - which to registered a jump of 5.21% on Monday, an increase of $1002 over the previous close.
Volatility in $BTC Bitcoin prices have increased as geo-political tensions mount and this will have an impact on mining companies as well.
Given the bottoming out of $ARBKF stock price, it is a buy at this price and can give rich returns over a 12 month period.