Argo Blockchain Plc 6-K, filed Nov 8, 2022
Argo Blockchain Plc (ARBK)
6-K
2022-11-08
For: 2022-11-08
View Original
Added on
April 05, 2026
About this 6-K
Argo Blockchain Plc filed this 6-K on November 8, 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 November, 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
October
Operational Update dated 08 November 2022.
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Press Release
8 November 2022
Argo Blockchain plc
("Argo" or "the Company")
October 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 October 2022.
During the month of October, Argo mined 204 Bitcoin or Bitcoin
Equivalents (together, BTC) compared to 215 BTC in September 2022.
The decrease in BTC mined was primarily due to a significant
increase in the Bitcoin network difficulty in October compared to
September.
As previously announced, the Company sold 3,843 new-in-box Bitmain S19J Pro machines which
represented the last batch of the original Bitmain order scheduled
for installation in October 2022. Consequently, the Company's total
hashrate capacity continues to be 2.5 EH/s.
As of 31 October 2022, the Company held 138 Bitcoin, of which 119
were BTC Equivalents.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in October amounted to £3.55
million [$4.00 million*] (September 2022 £3.78 million [$4.27
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of 32% for the month of October (September 2022:
25%).
Additionally, the Company repaid the $6.7 million that was
previously outstanding under the BTC-backed loan with Galaxy
Digital. This is consistent with the Company's risk management
strategy and reduces balance sheet exposure to downside BTC price
risk.
The Company also wishes to respond to media reports falsely
claiming that Hydro-Québec, the public utility for power in
Quebec, has proposed to stop providing electricity to existing
mining operations. The Company has spoken with representatives from
Hydro-Québec and the City of Baie-Comeau, and is confident
that its current access to power at its two Quebec facilities will
continue for the foreseeable future.
Argo is continuing to engage in financing discussions, as announced
on 31 October 2022, and will update investors in due
course.
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 realised 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 September 2022 and
October 2022.
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Month Ended 30 September 2022
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Month Ended 31 October 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 profit/(loss)
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(5,807)
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(6,560)
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(1,486)
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(1,673)
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Gross Margin
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(154%)
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(154%)
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(42%)
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(42%)
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Non mining revenue
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-
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-
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(41)
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(47)
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Depreciation of mining equipment
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1,723
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1,947
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1,934
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2,177
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Change in fair value of digital currencies(1)
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4,967
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5,611
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658
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741
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Realised (profit)/loss on sale of digital currencies
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55
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62
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64
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72
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Mining Profit
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938
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1,060
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1,129
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1,271
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Bitcoin and Bitcoin Equivalent Mining Margin
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25%
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25%
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32%
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32%
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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
September 2022 and October 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:
08 November, 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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