Argo Blockchain cuts 2022 debt by half, down to $75M
The mining company, which has been one of a number of firms to struggle amid negative market conditions and a highly-competitive mining ecosystem, reported half year net losses of $18.8 million in 2023, down over 50% from a net loss of $39.6 million in H1 2022.
Argo also notes that it has reduced its debt by $4 million in 2023, taking its total debt to $75 million. The company has cut its debt by $68 million, having owed $143 million in June 2022.
Revenues were down by 31% in comparison to H1 2022, with Argo netting $24 million midway through 2023 which it linked to a decrease in the value of Bitcoin and increasing global hashrate and the associated network difficulty.
Argo reports that it mined a total of 947 Bitcoin through the first half of the year, an increase of just 1% of the BTC mined during the same period in 2022. It is worth noting that 2023 has seen a 78% increase in global hashrate.
As of June 2023, Argo’s balance sheets reflect $9.1 million of cash holdings and 46 BTC. Argo began the second half of the year by raising $7.5 million in gross proceeds through a share placement in July 2022 offered to institutional and retail investors.
Related: Argo Blockchain reports insufficient funds, 'no assurance' it can avoid Chapter 11 bankruptcy
While the company had warned that it faced the reality of bankruptcy in late 2022, its 2023 interim half year results indicate that it plans to increase its total hashrate capacity to 2.8 EH/s by deploying some 1,628 BlockMiners to its Quebec-based mining facilities.
Argo also reported that it was in advanced discussions to sell “certain non-core assets” and was exploring other options to reduce its overall debt.
Argo board chairman Matthew Shaw highlighted a “transformational
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