Argo Blockchain, a leading cryptocurrency mining company, has successfully reduced its debt and overall costs, according to a recent report. While this move is expected to positively impact the company’s financial position, its revenue has taken a hit. Read on to find out more about Argo Blockchain’s latest financial updates.
Argo Blockchain Slashes Debt to $75M During H1 2023 as Revenue Declines
Argo Blockchain, the leading cryptocurrency miner, has made significant strides in reducing its debt during the first half of 2023. According to reports, the company’s debt dropped to $75 million, down from $143 million at the end of June 2022.
In addition to reducing its debt, Argo Blockchain also managed to lower its overall costs and expenses. However, the company experienced a decline in revenue compared to the previous year.
The H1 Results
In H1 2023, Argo Blockchain reported a pretax loss of $18.6 million, which is 61% less than the $47.9 million loss in 2022. The company also successfully reduced its debt from $143 million in H1 2022 to $75 million by the end of June 2023.
Argo Blockchain achieved a 33% decrease in operating costs and expenses, as well as a 21% decline in non-mining operating costs and expenses during Q2 2023 compared to the previous quarter.
Although the company managed to reduce its debt and operating costs, its revenue remained stagnant at $24 million at the end of H1 2023. This is significantly lower than the $34.6 million revenue recorded at the same time in 2022.
The decline in revenue is attributed to the falling value of Bitcoin and the increased global hash rate. As reported by CryptoPotato, Bitcoin’s mining difficulty reached a new all-time high, further impacting Argo Blockchain’s revenue.
Argo’s Turbulence During the Bear Market
Argo Blockchain faced challenges during the extended cryptocurrency bear market, particularly due to the declining price of Bitcoin. In an effort to cope with the market conditions and repay its loan agreement with Galaxy Digital, the company sold more Bitcoin than it produced in June last year.
Over the following months, Argo Blockchain continued to struggle and had to sell some of its machinery to stabilize its balance sheet. The company also failed to secure a multi-million fundraiser, leading to a significant drop in its share prices.
To avoid filing for bankruptcy protection, Argo Blockchain sold its Helios facility to Galaxy Digital for $65 million. This sale aimed to bring in fresh capital and reduce the company’s debt.
In early 2023, several investors filed a lawsuit against Argo Blockchain, accusing it of breaching federal securities law during its IPO in 2021. The company issued approximately 7.5 million stocks, initially valued at $15 each, but the prices have since plummeted.
Furthermore, Argo Blockchain experienced some leadership changes, with its CFO and CEO stepping down in February.
Looking ahead, Argo Blockchain’s Chairman, Matthew Shaw, expressed the company’s commitment to strengthening its balance sheet and driving business growth through financial discipline and operational excellence in the remaining months of 2023.
This article was created with reference to the source.