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Crypto Miner Argo's Strategy Pay Off in Q1 2024 with Reduced Losses

source-logo  financemagnates.com 23 May 2024 07:57, UTC

Argo Blockchain, a publicly-listed cryptocurrency mining company, announced its unaudited financial results for the first quarter of 2024, which showed an improvement compared to the same period last year. The company reported a revenue of $16.8 million, a 4% increase from the previous quarter, and a threefold reduction in net loss to $3.2 million. Compared to last year, revenues grew by almost 50%.

Argo Blockchain Reports Better Q1 2024 Performance, Reduces Debt

The company successfully increased its mining margin to $6.4 million from the $5.2 million reported the previous year, resulting in a gross profit of $1.9 million compared to a loss in Q1 2023.

Argo mined a total of 319 Bitcoin (BTC) during the quarter, averaging 3.5 BTC per day, with the adjusted EBITDA for the quarter standing at $3.8 million.

However, the company did not achieve an operating profit or net income, although reported losses were significantly reduced. In the first three months of the previous year, the firm incurred losses of over $9.1 million, but in 2024, this was reduced to nearly $3.2 million, a threefold decrease.

Argo Blockchain mines 319 BTC in Q1

UK-based cryptocurrency mining company Argo Blockchain announced that it mined 319 BTC in the first quarter. The company reported Q1 revenue of $16.8 million with $12.4 million in cash.

— CoinNess Global (@CoinnessGL) May 23, 2024

Despite the ongoing market volatility, Argo Blockchain also managed to reduce its debt by $12.4 million during the quarter, representing a 19% reduction from the balance at the end of 2023.

“We exited the Bitcoin halving with cash of over $12 million, Q1 debt reduction of over $12 million and streamlined Quebec operations resulting from the sale of Mirabel,” commented Thomas Chippas, the Chief Executive Officer of Argo, said. “We are enthusiastic about Argo's future growth and development and are dedicated to delivering value to our shareholders."

Argo Reduced Losses in 2023

Last month, the company reported its full-year results for 2023, revealing a year of strategic adjustments amid industry challenges. Although it achieved a modest gross profit, the net income remained negative for another year. However, the company was able to reduce its losses by 85%.

During the same period, it announced the sale of its data center in Mirabel, Canada.

In March, the firm entered into an agreement to sell its Mirabel, Quebec data center for $6.1 million. It also released its monthly mining output figures, which indicated a 21% month-on-month decrease in daily Bitcoin production. The company's London branch finalized this transaction a few weeks later while simultaneously issuing over 460,000 new ordinary shares.

Argo is a dual-listed company with shares available on the London Stock Exchange (LSE) under the ticker ARB and NASDAQ under the ticker ARBK.