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According to the report, Argo saw a 9% increase in revenue to record $19.5 million in Q1 2022.
Argo Blockchain PLC (LON: ARB), a global leader in Bitcoin mining has released its unaudited financial report for the first quarter of the year. According to the report, Argo saw a 9% increase in revenue to a record $19.5 million in Q1 2022. It was explained that the increase in revenue was largely linked to Argo’s growth in hashrate throughout 2021. Also, the mining of Bitcoin and Bitcoin equivalent increased to 470 BTC. This is a 21% increase from the same period last year (387 BTC).
Argo’s mining margin for the first quarter was 76%, and the average cost per BTC mined was $9779. Argo Blockchain finished Q1 with ample liquidity as it had about 2,700 BTC in its HODL coupled with $11.9 million in cash. Its Adj. EBITDA was $19.1 million, a 24% increase from the same period last year. Its net income was also $2.1 million. This is said to be a 90% drop from the same period last year. The huge drop can partly be linked to the recent struggle of the crypto market.
“During the first quarter, our team has focused on working towards the completion of Helios Phase 1, while continuing to deliver strong performance from our existing fleet. To be a successful miner you need three components – power, miners, and capital. We already have a strong foundation for growth at Helios with our access to 800 MW of power capacity,” said Peter Wall, Chief Executive of Argo.
The report also captured operational highlights of the company including the January 2022 launch of Argo Labs. This was established to recognize opportunities in the crypto ecosystem and assist decentralization of protocols. In March 2022, the company agreed to swap 10,000 S19 mining machines for new S19J Pro mining machines meant to be delivered to Helios facility. On May 5, 2022, the Helios facility began Bitcoin mining. By the end of the year, Argo seeks to increase its hashrate to 5.5 EH/s.
According to Wall, the company plans to improve its access to capital this quarter.
“This quarter, we improved our access to capital by establishing a financing relationship with NYDIG and strengthening our access to miners through our supply agreement with Intel for their new Blockscale ASIC chips. This will allow us to build custom-designed mining machines specifically to Argo’s specifications and built for use in immersion-cooling technology”, he said.
The current plan is to invest in the Helios facility in Texas expected to operate at 200 megawatts. It can also be increased to 800 megawatts. To purchase mining equipment for this, the company borrowed $70.6 million from New York Digital Investment Group (NYDIG) subsidiary. It is expected that the next quarter would be better as most of its plans would be in operation.