Argo Blockchain Plc 6-K, filed Oct 11, 2022
Argo Blockchain Plc (ARBK)
6-K
2022-10-11
For: 2022-10-11
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Added on
April 05, 2026
About this 6-K
Argo Blockchain Plc filed this 6-K on October 11, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
_____________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2022
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
9th Floor
16 Great Queen Street
London WC2B 5DG
England
(Address of principal executive office)
_____________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒
Form
40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
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Exhibit No.
1
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Description
September
Operational Update dated 11 October 2022
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Press
Release
11 October 2022
Argo Blockchain plc
("Argo" or "the Company")
September 2022 Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:
ARB; NASDAQ: ARBK), is pleased to provide the following operational
update for September 2022.
During the month of September, Argo mined 215 Bitcoin or Bitcoin
Equivalents (together, BTC) compared to 235 BTC in August 2022. The
decrease in BTC mined is primarily due to a 12% increase in average
network difficulty during September. Additionally, the Company is
continuing to curtail operations at its Helios facility in Dickens
County, Texas during periods of high electricity
prices.
As of 30 September 2022, the Company held 512 Bitcoin, of which 167
were BTC Equivalents. The Company closely monitors market
conditions and is actively using a variety of derivatives to manage
BTC holdings and mitigate risk exposure.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in September amounted to
£3.78 million [$4.27 million*] (August 2022: £4.39
million [$5.23 million*]). Argo generated this income at a Bitcoin
and Bitcoin Equivalent Mining Margin (Mining Margin) of 25% for the
month of September (an increase from 20% in August
2022).
The Company currently has 2.5 EH/s of total hashrate capacity and
expects to complete the installation of its Bitmain S19J Pro
machines by the end of October 2022. After accounting for the sale
of 3,400 mining machines to a third party that was reported on 7
October 2022, the Company now expects to achieve a total hashrate
capacity of 2.9 EH/s once the installation is
complete.
Organisational Changes
Effective October 15, Perry Hothi is stepping down from his role as
Chief Technology Officer at Argo and will serve as a transitional
advisor to the Company. The technology function will be led by Jean
Esquier, who currently serves as Vice President of Technology and
Development.
In addition, the Company is excited to welcome Jason Zaluski to the
team as Vice President of Mining. In this role. Jason will
strengthen the Company's core team and focus on optimising
operations of Argo's mining fleet. Jason brings tremendous
experience in blockchain technology and Bitcoin mining, having
previously worked at Hut 8 Mining as Vice President of Strategic
Technologies.
Management Commentary
Peter Wall, Chief Executive Officer at Argo, said: "As another
month of high energy prices and uncertain market conditions ended,
Argo continues to execute on its plans to grow operations at
Helios. We are nearing completion of the installation of our new
Bitmain S19J Pro machines, which will increase our total hashrate
capacity to 2.9 EH/s by the end of the month. This will represent a
81% increase in total hashrate capacity since Q1 2022. I continue
to be proud of our team for its efforts to deliver long-term growth
in the interest of our shareholders."
"Additionally, I'd like to thank Perry Hothi for his long years of
service and great contribution to Argo," Wall continued. "Perry has
been with us from the very beginning, and I wish him well as he
moves on."
Perry Hothi, Chief Technology Officer at Argo, said, "I've decided
to leave Argo because I believe the technology team is ready. I
have accomplished everything I set out to do at Argo. Working with
Jean and the rest of the technology team these last few years has
been a once in a lifetime experience. I'm deeply grateful for their
skill, heart, and friendship. It is their time now."
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure
not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent
Mining Margin has limitations as an analytical tool. In particular,
Bitcoin and Bitcoin Equivalent Mining Margin excludes the
depreciation of mining equipment and so does not reflect the full
cost of our mining operations, and it also excludes the effects of
fluctuations in the value of digital currencies and realized losses
on the sale of digital assets, which affect our IFRS gross profit.
This measure should not be considered as an alternative to gross
margin determined in accordance with IFRS, or other IFRS measures.
This measure is not necessarily comparable to similarly titled
measures used by other companies. As a result, you should not
consider this measure in isolation from, or as a substitute
analysis for, our gross margin as determined in accordance with
IFRS.
The following table shows a reconciliation of gross margin to
Bitcoin and Bitcoin Equivalent Mining Margin, the most directly
comparable IFRS measure, for the months of July 2022 and August
2022.
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Month Ended 31 August 2022
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Month Ended 30 September 2022
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£(000s)
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$ (000s)
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£(000s)
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$ (000s)
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Gross (loss)
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(4,471)
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(5,334)
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(5,807)
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(6,560)
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Gross
Margin
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(110%)
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(110%)
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(154%)
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(154%)
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Depreciation
of mining equipment
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1,644
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1,961
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1,723
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1,947
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Change
in fair value of digital currencies
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2,944
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3,512
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4,967
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5,611
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Realised
loss on sale of digital currencies
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765
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913
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55
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62
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Mining Profit
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882
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1,052
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938
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1,060
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Bitcoin
and Bitcoin Equivalent Mining Margin
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20%
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20%
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25%
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25%
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(1) Due
to unfavourable changes in the fair value of BTC there was a loss
on the change in fair value of digital currencies in August 2022
and September 2022.
* Dollar values translated from pound sterling into U.S. dollars
using the noon buying rate of the Federal Reserve Bank of New York
as at the applicable dates
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes
forward-looking statements which reflect the Company's or, as
appropriate, the Directors' current views, interpretations, beliefs
or expectations with respect to the Company's financial
performance, business strategy and plans and objectives of
management for future operations. These statements include
forward-looking statements both with respect to the Company and the
sector and industry in which the Company operates. Statements which
include the words "expects", "intends", "plans", "believes",
"projects", "anticipates", "will", "targets", "aims", "may",
"would", "could", "continue", "estimate", "future", "opportunity",
"potential" or, in each case, their negatives, and similar
statements of a future or forward-looking nature identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties because they relate to
events that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. Accordingly,
there are or will be important factors that could cause the
Company's actual results, prospects and performance to differ
materially from those indicated in these statements. In addition,
even if the Company's actual results, prospects and performance are
consistent with the forward-looking statements contained in this
document, those results may not be indicative of results in
subsequent periods. These forward-looking statements speak only as
of the date of this announcement. Subject to any obligations under
the Prospectus Regulation Rules, the Market Abuse Regulation, the
Listing Rules and the Disclosure and Transparency Rules and except
as required by the FCA, the London Stock Exchange, the City Code or
applicable law and regulations, the Company undertakes no
obligation publicly to update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise. For a more complete discussion of
factors that could cause our actual results to differ from those
described in this announcement, please refer to the filings that
Company makes from time to time with the United States Securities
and Exchange Commission and the United Kingdom Financial Conduct
Authority, including the section entitled "Risk Factors" in the
Company's Registration Statement on Form F-1.
For further information please contact:
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Argo Blockchain
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Peter Wall
Chief
Executive
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via Tancredi +44 203 434 2334
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finnCap Ltd
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Corporate
Finance
Jonny Franklin-Adams
Seamus Fricker
Joint
Corporate Broker
Sunila de Silva
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+44 207 220 0500
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Tennyson Securities
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Joint
Corporate Broker
Peter Krens
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+44 207 186 9030
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OTC Markets
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Jonathan Dickson
jonathan@otcmarkets.com
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+44 204 526 4581
+44 7731 815 896
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Tancredi Intelligent Communication
UK
& Europe Media Relations
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Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed
argoblock@tancredigroup.com
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+44 7727 180 873
+44 7888 672 701
+44 7915 033 739
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About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK)
blockchain technology company focused on large-scale cryptocurrency
mining. With its flagship mining facility in Texas, and offices in
the US, Canada, and the UK, Argo's global, sustainable operations
are predominantly powered by renewable energy. In 2021, Argo became
the first climate positive cryptocurrency mining company, and a
signatory to the Crypto Climate Accord. Argo also participates in
several Web 3.0, DeFi and GameFi projects through its Argo Labs
division, further contributing to its business operations, as well
as the development of the cryptocurrency markets. For more
information, visit www.argoblockchain.com.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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Date:
11 October, 2022
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ARGO BLOCKCHAIN PLC
By:
Name:
Peter Wall
Title:
Chief Executive Officer
Name:
David Zapffe
Title:
General Counsel
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