SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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
Argo Blockchain plc
(Translation of registrant’s name into English)
16 Great Queen Street
London WC2B 5DG
(Address of principal executive office)
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): ☐
September Operational Update dated 7 October 2021
07 October 2021
Argo Blockchain PLC
("Argo" or the "Company")
September 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.
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|
|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)|
|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:
via Tancredi +44 203 434 2334
Joint Corporate Broker
Sunila de Silva
+44 207 220 0500
Joint Corporate Broker
|+44 207 186 9030|
+44 204 526 4581
+44 7731 815 896
Tancredi Intelligent Communication
UK & Europe Media Relations
+44 7727 180 873
+44 7861 995 628
+44 7957 549 906
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.
|Date: 7 October, 2021|
ARGO BLOCKCHAIN PLC
Name: Peter Wall
Title: Chief Executive Officer
Name: Davis Zaffe
Title: General Counsel