Crypto mining company Argo Blockchain has made substantial strides in its financial performance, significantly reducing its debt to $75 million during the first half of 2023. The company faced a net loss of $18.8 million, marking a notable 50% drop compared to the net loss of $39.6 million in H1 2022.
Argo’s prudent measures have enabled it to reduce its debt by $4 million in 2023, trimming its total debt from $143 million in June 2022. Despite a 31% decline in revenues compared to H1 2022, attributed to Bitcoin’s value decrease and elevated global hashrate, Argo mined a total of 947 Bitcoin in H1 2023, a 1% increase over the same period in 2022.
As of June 2023, Argo holds $9.1 million in cash and 46 BTC. The company began H2 2023 on a positive note, raising $7.5 million through a share placement in July 2022.
Argo’s efforts to enhance its operational capacity are evident as it plans to deploy 1,628 BlockMiners to its Quebec-based facilities, aiming to reach a total hashrate capacity of 2.8 EH/s. The company also indicated its intent to reduce overall debt by exploring options and selling non-core assets.
“The transactions reduced total indebtedness by $41 million and allowed Argo to simplify its operating structure.”
Board Chairman Matthew Shaw highlighted a transformative collaboration with Galaxy Digital, involving the sale of the Helios mining facility for $65 million in December 2022, followed by a $35 million, three-year asset-backed loan refinancing. The resilience demonstrated by maintaining a fleet of over 27,000 miners, including an agreement with Galaxy for Bitmain S19J Pro miners, has been crucial to Argo’s ongoing operations.
Despite earlier financial concerns in 2022 and a deal with Galaxy, Argo’s progress is evident in both reduced debt and lower net losses, showcasing its commitment to navigating challenging market conditions.