Argo Blockchain (ARB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $7.5M, down from $10.4M in Q3 2023; nine-month revenue rose to $36.7M from $34.4M year-over-year.

• Net loss for Q3 2024 was $6.3M, an improvement from $9.9M loss in Q3 2023; nine-month net loss widened to $39.2M from $26.1M.

• Mining margin dropped to 8% in Q3 2024 from 58% in Q3 2023, reflecting less favorable power credits.

• Adjusted EBITDA was negative $2.1M for Q3 2024, compared to positive $2.4M in Q3 2023.

• Ended Q3 with $2.5M in cash and four BTC or BTC equivalent.

Financial highlights

• Total BTC mined in Q3 2024 was 123, averaging 1.3 BTC per day.

• Direct costs increased to $6.9M in Q3 2024 from $4.3M in Q3 2023.

• Gross loss for Q3 2024 was $1.7M, compared to $0.8M loss in Q3 2023.

• Basic loss per share was $0.01 for Q3 2024, $0.02 for Q3 2023.

• Cash and cash equivalents at quarter-end were $2.5M, down from $7.4M at year-end 2023.

Outlook and guidance

• Management noted improved BTC mining economics in October and November 2024.

• Focus on diversifying into High Performance Computing (HPC) and AI computational markets.

• Ongoing discussions regarding miners at Helios facility as hosting agreement with Galaxy will not be renewed after December 2024.