The miner, one of many struggling with unfavorable market conditions and a highly competitive mining ecosystem, reported a half-year 2023 net loss of $18.8 million, up from a net loss of $39.6 million in 2019 down by more than 50%. First half of 2022.
Argo also noted that by 2023, the company has reduced its debt by $4 million, bringing its total debt to $75 million. The company has cut its debt by $68 million, to $143 million in June 2022.
Compared to the first half of 2022, Argo’s revenue fell by 31%, and by mid-2023, Argo’s net income was 24 million US dollars, which is related to the decline in the value of Bitcoin, the increase in global computing power and related network difficulty.
Argo reported that a total of 947 bitcoins were mined in the first half of this year, an increase of just 1% over the BTC mined during the same period in 2022. Notably, global computing power will increase by 78% in 2023.
As of June 2023, Argo’s balance sheet reflects $9.1 million in cash holdings and 46 bitcoins. In the second half of this year, Argo raised gross proceeds of $7.5 million through a rights issue to institutional and retail investors in July 2022.
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Although the company had warned that it would face the reality of bankruptcy by the end of 2022, its interim results for 2023 showed that the company plans to increase its total hashrate capacity to 2.8 by deploying approximately 1,628 BlockMiners at its Quebec-based mining facility. EH/s.
Argo also reported that the company is in advanced discussions to sell “certain non-core assets” and is exploring other options to reduce overall debt.
Argo board chairman Matthew Shaw highlighted a “transformative series of transactions” with Galaxy Digital, in which the company sold the Helios mining facility and property for $65 million in December 2022. Argo subsequently provided Galaxy Digital with a new $35 million three-year asset-backed loan refinancing.
“These transactions reduce total debt by $41 million and allow Argo to simplify its operating structure.”
Shaw added that Argo’s ability to maintain more than 27,000 miners is critical to its continued operations, with approximately 23,600 Bitmain S19J Pros running on the Helios site through an ongoing hosting agreement with Galaxy.
Troubled cryptocurrency mining firm Argo Blockchain has significantly reduced its debt and reduced its half-year net loss compared with 2022, mid-year financial data showed.
Argo had previously warned that it would face dire financial conditions by the end of 2022 until it reached an agreement with Galaxy for its Helios facility. In the months since the deal closed, former Argo CEO Peter Wall announced he was stepping down from the company.
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