Argo Blockchain reports Q3 2023 with variable financial performance, including a net loss. Strategic measures drive operational efficiency and cost reductions.
A period of inconsistent financial performance for Q3 2023 was reported by publicly traded cryptocurrency mining business Argo Blockchain Ltd (LSE: ARGO) in its most recent financial report. Despite experiencing a net loss during the same period, the company implemented strategic steps that resulted in greater operational efficiency and cost reductions.
Argo Blockchain’s Q3 Performance Uptick Despite Market Challenges
The mining margin increased to 58% in Q3 2023 from 36% in Q2 2023 as a result of Argo Blockchain’s use of economic curtailment tactics at its Helios facility, which allowed it to accumulate $4.4 million in power credits against high electricity prices.
Additionally, the business cut the average direct cost per Bitcoin (BTC) mined from $17,566 to $11,736—a 33% decrease. In addition, the company recorded an 11% decrease in regular non-mining operational expenses and $3.1 million in positive Adjusted EBITDA for the quarter, for a total of $5.4 million for the nine months.
The operating and financial performance of Argo during the third quarter was satisfactory, according to interim CEO Seif El-Bakly. “The ability of our mining machines to curtail operations at Helios during periods of high electricity prices allowed us to generate significant power credits.”
Operationally, the company’s overall hash rate capacity was increased to 2.8 EH/s with the conclusion of the BlockMiner machine deployment. $10.4 million was made from mining 370 Bitcoin and Bitcoin equivalents. Argo accomplished a significant financial management milestone by cutting its Galaxy Digital debt from $32 million to $27 million, resulting in a total debt of $70 million at the end of the quarter.
Argo’s Budgetary Challenges
Argo Blockchain encountered financial difficulties despite these operational achievements, as evidenced by a $9.9 million net loss for the quarter. A one-time non-cash charge of $1.2 million was incurred by the corporation as a result of new Canadian legislation reevaluating sales taxes from previous periods. At the end of the quarter, Argo had $8.0 million in cash and 32 BTC recorded on its financial sheet.
If one were to take away the power credits, which made up almost half of the company’s sales, the most recent profits would end up being lower than that of the second quarter. They also failed to meet the same time last year in the first nine months of 2023. The income for the year to date was $34,403, which is less than the $47,741 total from 2022.
The figures align with those released for the first half of 2023, when Argo lost $18.8 million over the course of six months while mining more.
