Argo Blockchain (ARB) Q4 2024 earnings summary

Executive summary

• Argo Blockchain plc is a blockchain technology company focused on large-scale Bitcoin mining, operating both owned and hosted facilities in North America, with a strategy emphasizing financial discipline, operational excellence, and strategic partnerships for growth.

• In 2024, the company faced significant challenges due to the Bitcoin halving event, resulting in a sharp drop in mining economics, a $31.5 million impairment charge, and a net loss of $55.1 million, while revenue decreased 7% year-over-year to $47 million.

• The company fully repaid its Galaxy debt in 2024, reduced operating expenses by 34% compared to 2023, and continued to sell mined Bitcoin weekly to fund operations.

• Material uncertainties exist regarding the company's ability to continue as a going concern, with the need to raise additional funds in H2 2025 to meet liabilities, including interest payments on $40 million in unsecured bonds maturing in November 2026.

• The company is exposed to volatile Bitcoin prices, power costs, and hashprice, and is actively managing liquidity through asset sales, equity raises, and potential property sales.

Financial highlights

• Total revenue for 2024 was $47.0 million, down from $50.6 million in 2023, primarily due to the April 2024 Bitcoin halving and a reduction in Bitcoin mined to 755 from 1,760 in 2023.

• Net loss for 2024 was $55.1 million, compared to a net loss of $35.0 million in 2023; Adjusted EBITDA was $5.7 million, down from $7.7 million in 2023.

• Gross margin fell to 3% in 2024 from 6% in 2023, and mining profit margin dropped to 8% from 19% year-over-year.

• Power and hosting costs decreased by $3.1 million to $32.9 million in 2024, reflecting operational optimizations and market-based power pricing.

• Operating expenses decreased by $6.4 million to $12.5 million in 2024, driven by cost reductions and the sale of the Mirabel facility.

Outlook and guidance

• Management expects continued volatility in mining economics post-halving, with ongoing focus on cost control, asset optimization, and potential expansion at the Baie Comeau facility.

• The company plans to raise additional funds in H2 2025 through asset sales, equity raises, or property sales to meet debt obligations and maintain operations.

• Strategic emphasis remains on pairing mining with stranded or wasted energy and exploring diversification opportunities at the intersection of energy, finance, and technology.