The publicly
listed Bitcoin (BTC) miner from Wall Street and London’s City, Argo Blockchain (NASDAQ:
ARBK, LSE: ARB) reported a net loss of $6.3 million in the third quarter as the
cryptocurrency mining company grappled with challenging market conditions and
reduced mining margins.
Wall Street Bitcoin Miner
Argo’s Profits Vanish as Bitcoin Blues Bite
Revenue
fell to $7.5 million in Q3, down 28% from $10.4 million in
the same period last year. The company mined 123 Bitcoin during the
quarter, averaging 1.3 BTC per day.
Mining
margins contracted
significantly to 8% from 58% in the year-ago period, when the company
benefited from power credits due to economic curtailments. Adjusted EBITDA
swung to negative $2.1 million compared to positive $2.4 million last year.
“The
third quarter was a difficult quarter for BTC miners, including Argo,”
said CEO Thomas Chippas. “It is positive that we have seen improvement in
BTC mining economics in October, and that this has continued into
November.”
The results
come after a
better-than-expected first half of 2024. Despite a nearly 50% decline in
the number of mined cryptocurrencies during that period, the company managed to
increase its revenues by approximately 18%.
For the year-to-date period, the results are increasingly deteriorating. The net loss now exceeds $39 million, compared to $26 million reported during the same period last year.
Argo’s Q3 2024 results are out!🔸 Generated a revenue of $7.5 million🔸 Mining margin percentage of 8% 🔸 Fully repaid the Galaxy loan in August 2024🔸 Class action lawsuit filed in January 2023 dismissed in October 2024Post quarter updates include:🔸A non-binding LOI…
— Argo (@ArgoBlockchain) November 20, 2024
A source of partial consolation may be the fact that Argo is not alone in facing losses. Bitfarms, Marathon Digital Holdings, TeraWulf, and HIVE Digital Technologies, the biggest players in the industry, all struggled to maintain profitability in Q3 2024. The only exception was Hut 8, which posted a modest net profit of $0.9 million.
Galaxy Digital’s Loan
The company
ended the quarter with $2.5 million in cash and four Bitcoin. During Q3, Argo
reduced its debt by $12.4 million, including fully repaying a
loan from Galaxy Digital.
In early
August, the company reported that
it had repaid last $18 million out of a total $35 million debt owed to an
entity owned by Mark Novogratz, a prominent figure in the cryptocurrency space.
The loan was intended to save the Bitcoin…
