The Argo Blockchain PLC (LON: ARB) share price edged 3.88% lower after releasing its financial results for the year to 31 December 2022. The company mined 2,156 BTC in 2022, representing a 5% increase from the BTC mined in 2021, despite a surge in the global hashrate and increased network difficulty.
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As a result, the Bitcoin mining company grew its hash rate capacity by 55% to 2.5 EH/s at the end of 2022 from 1.6 EH/s at the end of 2021. The company commenced mining activities at its flagship Helios facility on 5 May 2022 after installing the necessary mining rigs and connecting the facility to the power grid.
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Argo Blockchain generated revenues worth £47.4 million ($58.6 million), representing a 36% decline from 2021 figures. The company attributed the lower revenues to the steep decline in Bitcoin prices during the year. Furthermore, the increase in global hashrate and the higher network difficulty also contributed to the lower revenues.
The company’s pretax earnings were dealt a massive blow as it registered an adjusted EBITDA of £1.0 million ($1.2 million) compared to £55.0 million ($74.2 million) in 2021. The firm incurred a net loss of £194.2 million ($240.2 million) due to the change in the fair value of its digital assets, the impairment of its assets and the divestiture of certain assets.
Argo Blockchain completed several agreements with Galaxy Digital Holdings Ltd in late December, including selling its flagship Helio facility for £53 million ($65 million). The company also agreed to refinance existing equipment financing loans via a new asset-backed loan from Galaxy for £28 million ($35 million).
The deals signed with Galaxy Digital improved Argo’s balance sheet and liquidity by reducing total debt by £33 million ($41 million) and improving its cash position. At the end of the year, the company had debt worth £63 million ($76 million).
The Bitcoin mining company has also signed a two-year hosting agreement with Galaxy Digital to retain ownership of its approximately 23,619 Bitmain S19J Pro machines at Helios.
*This is not investment advice.
Argo Blockchain share price.
The Argo Blockchain share price edged 3.88% lower to trade at 12.15p, from Thursday’s closing price of 12.64p.
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