UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2021
Commission File Number: 333-258926
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Argo Blockchain plc
(Translation of registrant’s name into English)
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9th Floor
16 Great Queen Street
London WC2B 5DG
England
(Address of principal executive office)
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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
Exhibit No. 1 | Description September Operational Update dated 7 October 2021 |
Press Release
07 October 2021
Argo Blockchain PLC
("Argo" or the "Company")
September Operational Update
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK), is pleased to provide the following operational update for September.
During the month of September, Argo mined 165 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 206 BTC in August. This brings the total amount of BTC mined year-to-date to 1479 BTC.
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in September amounted to £5.50 million ($7.59 million*) (August 2021: £6.83 million ($9.43 million*)). Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 84% for the month of September (August 2021: 86%). The Company has maintained consistent Bitcoin and Bitcoin Equivalent Mining Margins despite increases in network difficulty since July 2021.
At the end of September, the Company owned 1836 Bitcoin or BTC equivalent.
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 realized 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 Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the months of August and September 2021.
| Month Ended 31 August 2021 | Month Ended 30 September 2021 | |||
| £ | $ | £ | $ | |
| Gross Profit | 10,427,53 | 14,396,250 | 108,284 | 149,497 |
| Gross Margin¹ | 145% | 145% | 2% | 2% |
| Depreciation of mining equipment | 846,382 | 1,168,515 | 770,006 | 1,063,070 |
| Charge in fair value of digital currencies | (4,736,507) | (6,539,222) | 4,130,925 | 5,703,155 |
| Realised profit on sale of digital currencies | (305,366) | (421,588) | (74,582) | (102,968) |
| Crypto-currency management fees | (327,652) | (452,356) | (298,136) | (411,607) |
| Mining Profit | 5,904,388 | 8,151,599 | 4,636,497 | 6,401,147 |
| Bitcoin and Bitcoin Equivalent Mining Margin | 86% | 86% | 84% | 84% |
(1) Due to favourable changes in fair value of Bitcoin and Bitcoin Equivalents in August and September 2021, gross profit exceeded revenue in both periods.
*Dollar values translated from pound sterling into U.S. dollars at the rate of £1.00 to $1.38, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2021.
This announcement contains inside information.
For further information please contact:
| Argo Blockchain | |
Peter Wall Chief Executive | via Tancredi +44 203 434 2334 |
| finnCap Ltd | |
Corporate Finance Jonny Franklin-Adams Tim Harper Joint Corporate Broker Sunila de Silva | +44 207 220 0500 |
| Tennyson Securities | |
Joint Corporate Broker Peter Krens | +44 207 186 9030 |
| OTC Markets | |
Jonathan Dickson jonathan@otcmarkets.com | +44 204 526 4581 +44 7731 815 896 |
Tancredi Intelligent Communication UK & Europe Media Relations | |
Emma Valgimigli Emma Hodges Salamander Davoudi argoblock@tancredigroup.com | +44 7727 180 873 +44 7861 995 628 +44 7957 549 906 |
About Argo:
Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB and on the Nasdaq Global Select Market in the United States under the ticker: ARBK.
SIGNATURES
| Date: 7 October, 2021 | ARGO BLOCKCHAIN PLC By: Name: Peter Wall Title: Chief Executive Officer Name: Davis Zaffe Title: General Counsel |