Argo Blockchain (ARB) Q2 2024 earnings summary

Executive summary

• Revenue rose 18% year-over-year to $29.3M in H1 2024, driven by higher Bitcoin prices despite a 46% drop in BTC mined due to increased global hashrate and halving.

• Net loss widened to $32.7M from $18.6M in H1 2023, impacted by a $22M impairment on mining machines.

• Adjusted EBITDA improved to $5.7M from $2.8M year-over-year.

• Galaxy loan fully repaid in August 2024, significantly deleveraging the balance sheet.

• Focus remains on financial discipline, operational efficiency, and strategic partnerships.

Financial highlights

• Mining margin was $11.5M (39%) vs $10.2M (42%) in H1 2023.

• Gross margin was $1.8M (6%) vs a loss of $1.4M (-6%) in H1 2023.

• Cash and equivalents at period end: $4.0M, plus 11 BTC equivalent.

• Operating expenses reduced by over 25% compared to H1 2023.

• Weighted average shares outstanding increased to 575.7M from 477.8M.

Outlook and guidance

• Mining margin percentage expected to decline in H2 2024 due to deteriorating Bitcoin economics post-halving.

• Company will continue to focus on financial discipline, operational excellence, and growth via strategic partnerships.

• Material uncertainties exist regarding ability to continue as a going concern due to debt service, Bitcoin price volatility, and hosting agreement renewal risks.