Argo Blockchain Turns £194M in Loss as BTC Price Tumbled in 2022

Argo Blockchain (LSE: ARB; NASDAQ: ARBK) published its financials for 2022, ending the year with a revenue of £47.4 million ($58.6 million), which is a decrease of 36 percent. The figure declined due to a decline in Bitcoin price and an increase in the global hash rate.

Argo Blockchain's 2022 Results

The company mined 2,156 Bitcoins in 2022, which is a decrease of 5 percent, while its hash rate capacity increased 55 percent. At the end of the year, it held 141 Bitcoins, out of which 116 were Bitcoin Equivalents.

Argo, listed in London and New York, closed in 2022 with an adjusted EBITDA of £1 million ($1.2 million), which is down from £55 million ($74.2 million) in 2021. Its mining margin came down to 54 percent from the previous year's 84 percent.

According to the official numbers, the company posted a net loss of £194.2 million ($240.2 million) for 2022, driven by the declining value of cryptocurrencies, impairment of assets, and losses associated with its divestitures.

"Having navigated challenging market conditions in both the crypto sector and the global economy in the second half of 2022, Argo has emerged stronger and in a much more solid financial position," said Seif El-Bakly, Argo Blockchain's Interim CEO.

The Sale of Helios

Meanwhile, Argo avoided bankruptcy last year with a strategic deal with Galaxy Digital Holdings, Ltd, a financial firm focused on digital assets, owned by Mike Novogratz. It sold its Helios facility to Galaxy for £53 million ($65 million) to refinance existing loans. Moreover, the sale improved Argo's balance sheet by reducing total indebtedness by £33 million ($41 million) and improving its cash position.

"Following the build of Helios and the strategic transaction with Galaxy, we have streamlined our operations to maximize efficiency and increase our hash rate while maintaining our mining capacity thanks to our Hosting Agreement," El-Bakly added. "On the basis of these foundations, we continue to work diligently on the next stage of Argo's growth and development, with the goal of delivering long-term value to our shareholders."