Argo Blockchain Plc 2020 Full Year Results

  • Blockchain , Cryptocurrencies
  • 29.04.2021 10:35 am

120% revenue and 5 times EBITDA growth delivers first annual profit 

Argo Blockchain Plc, a global leader in cryptocurrency mining (LSE: ARB), is pleased to announce its audited  results for the year ended 31 December 2020.  

Financial highlights 

  •  Revenue increased by 120% to £19.0m (2019: £8.6m) 
  •  Total number of Bitcoins mined rose from 1,330 in 2019 to 2,465 in 2020, an 85% increase in annual  production 
  •  Mining margin 41% (2019: 60%) despite challenging market conditions, including Bitcoin halving in  May 2020 and the global impact of the COVID-19 pandemic 
  •  Administrative expenses were reduced by £1.1m to £2.4m as a result of series of cost reduction efforts ● Achieved EBITDA* of £7.9m in 2020 compared with EBITDA* of £1.4m in 2019  
  •  Delivered net profit of £1.7m (2019: £0.7m net loss) 
  •  Cash and digital assets held as at 31 December 2020 amounted to £6.7m (2019: £1.2m) 
  •  As at 31st March 2021, the Group held 764 Bitcoin and equivalents valued at a £32.6m based on the Bitcoin price at that time 
  • *Earnings before interest, tax, depreciation and amortisation 

Operating highlights  

  •  Strong execution of “smart growth” strategy by new leadership team under chief executive officer  Peter Wall and executive chairman Ian MacLeod following their respective appointments in January  2020 
  •  Mining capacity expanded from 210 petahash in January 2020 to 645 petahash on SHA-256 and from  180 Megasols to 280 Megasols on Equihash 

Post balance sheet events

  •  All mining machines currently mining have achieved over 100% ROI*, including those installed in  January and February of 2021  
  •  Acquired 320 acres of land in west Texas for a total consideration of US$17.5m with access to some  of the lowest-cost clean electricity to support a hosting facility project as part of the next phase of  smart growth in 2022 
  •  Raised £49m in new equity for investment in mining rigs, Texas development, blockchain/fintech  ventures including a significant equity investment in Pluto Digital Assets Plc, and working capital 
  •  Memorandum of understanding signed with DMG Blockchain Solutions to create Terra Pool, the first  “green” Bitcoin mining pool to be powered by clean energy, in response to climate change concerns  
  •  Shares admitted to trading on the OTCQB Venture Market in January 2021 and upgraded to trading  on the OTCQX Best Market in February 2021 
  •  On 2 February 2021, the Group signed a Sale and Purchase Agreement with GPUone for the purchase  of two data centres in Quebec 
  •  Q1 2021 was the most profitable quarter to date with 387 Bitcoin mined, revenues of £13.4 million and a mining margin of 81% 
  • "ROI defined as yield of mining being greater than machine cost 

Current Trading and Outlook 

  •  Strong start to trading in Q1 2021 driven by rise in Bitcoin prices and stable mining difficulty 
  •  Continued investment in new mining capacity, new ventures and strong balance sheet has positioned Argo for long-term growth 
  •  Well placed to benefit from robust trading conditions amid buoyant demand for cryptocurrency  

Commenting on the results, Peter Wall, CEO, said: “Argo crossed a major inflexion point in 2020 in its history  by achieving full-year profitability on a 120% increase in revenue, our second consecutive year of triple-digit  top-line growth. With a proven management team, world-class mining infrastructure, and strong tailwinds from  the industry’s recent growth, the Board looks forward to the future with great confidence.” 

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