Company Registration No. 11097258 (England and Wales)
ARGO BLOCKCHAIN PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 COMPANY INFORMATION Directors J NolanM Shaw R Chopra M Perrella
T Chippas (resigned 1 February 2025)
Company secretary MSP Corporate Services Limited Company number 11097258 Registered office Argo Blockchain PLCEastcastle House 27/28 Eastcastle Street London
W1W 8DH
United Kingdom
Auditor PKF Littlejohn LLP15 Westferry Circus Canary Wharf London
E14 4HD
United Kingdom
Broker Tennyson Securities65 Petty France London, United Kingdom SW1 9EU
Bankers Bank of Montreal129 St-Jacques Montreal Quebec
H2Y 1L6
Canada
Registrar Computershare Investor Services PLCThe Pavilions Bridgwater Road Bristol
BS13 8AE
United Kingdom
Solicitors Fladgate LLP16 Great Queen Street London
WC2B 5DG
United Kingdom
CONTENTSCOMPANY INFORMATION 2
CONTENTS 3
CHAIRMAN'S STATEMENT 5
BOARD OF DIRECTORS 7
STRATEGIC REPORT 8
DIRECTORS' REPORT 14
DIRECTORS' REMUNERATION REPORT 18
NOMINATION COMMITTEE REPORT 23
AUDIT COMMITTEE REPORT 26
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURE (TCFD) REPORT 31
DIRECTORS' RESPONSIBILITIES STATEMENT 42
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARGO BLOCKCHAIN PLC 43
GROUP STATEMENT OF COMPREHENSIVE INCOME 48
GROUP STATEMENT OF FINANCIAL POSITION 49
GROUP STATEMENT OF CHANGES IN EQUITY 55
GROUP STATEMENT OF CASHFLOWS 53
NOTES TO THE FINANCIAL STATEMENTS 55
COMPANY INFORMATION 55
BASIS OF PREPARATION 55
ACCOUNTING POLICIES 56
FINANCIAL RISK FACTORS 63
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS 64
KEY JUDGEMENTS AND ESTIMATES 65
REVENUES 66
EXPENSES BY NATURE 66
AUDITOR'S REMUNERATION 66
EMPLOYEES 66
DIRECTOR'S REMUNERATION 67
EARNINGS PER SHARE 67
TAXATION 67
ASSETS AND LIABLITIES HELD FOR SALE 68
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS 69
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD 70
INTANGIBLE ASSETS NON CURRENT 71
TANGIBLE FIXED ASSETS 72
TRADE AND OTHER RECEIVABLES 74
INTANGIBLE ASSETS CURRENT 74
SHARE OPTIONS, RESTRICED STOCK UNITS AND WARRANTS 75
ORDINARY SHARES 78
RESERVES 78
TRADE AND OTHER PAYABLES 79
LOANS AND BORROWINGS 79
FINANCIAL INSTRUMENTS 80
COMMITMENTS AND CONTINGENCIES 88
RELATED PARTY TRANSACTIONS 82
CONTROLLING PARTY 82
POST BALANCE SHEET EVENTS 82
COMPANY STATEMENT OF FINANCIAL POSITION 83
COMPANY STATEMENT OF CHANGES IN EQUITY 85
COMPANY STATEMENT OF CASH FLOWS 87
NOTES TO THE FINANCIAL STATEMENTS 88
TRADE AND OTHER RECEIVABLES / INTERCOMPANY 88
TRADE AND OTHER PAYABLES 89
FINANCIAL INSTRUMENTS 89
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY 91
KEY JUDGEMENTS AND ESTIMATES 92
EMPLOYEES 92
For the past 24 months, the Company has focused on three key pillars: financial discipline, operational excellence, and strategic partnerships for growth. We have made significant progress on financial discipline and operational excellence; strategic partnerships will be key for 2025 as Argo aims to strengthen its balance sheet and grow its hashrate.
Financial Discipline
The focus for Argo has been to reduce the high-interest rate debt owing to Galaxy. The $35 million debt owed to Galaxy began amortising at $1.1 million per month in May 2023. As noted in my 28 August 2024 update to shareholders, I am pleased to report that Argo has repaid the full amount of this loan to Galaxy as announced by the Company on August 12th. This Galaxy debt was repaid four months ahead of the revised schedule, and nearly 18 months ahead of the original repayment schedule. The early repayment reflects the Company's focus on strengthening its balance sheet, reducing its financial liabilities, and focusing on operational excellence. Repayment was made possible by using cash flow generated from operations, cash generated from equity raises and cash generated through the sale of non-core assets without any meaningful impact to Argo's hash rate. Repaying the Galaxy loan was a significant milestone for Argo. With the unsecured bonds maturing in November 2026, Argo will turn its attention to either refinancing, restructuring or buying back these bonds.
Revenue in 2024 was $47 million, compared to $50.6 million in 2023. Non-mining operating expenses were $13 million, a decrease from $19 million in 2023. Adjusted EBITDA was $5.6 million, compared to $7.7 million in 2023. Loss attributable to shareholders totalled $44.3 million. Our cash balance at December 31, 2024 was $8.6 million.
Operational Excellence
2024 saw the end of Argo's relationship with the Helios facility. After constructing and energizing the facility in 2021 and 2022, selling the facility to Galaxy in late 2022 with a two year hosting agreement, Argo has now exited the facility. We are pleased with the new hosting arrangements we have announced with Merkle, in both Tennessee and Washington State during the early part of 2025. And we have utilized additional capacity at our owned site in Baie Comeau, Quebec. We took the opportunity to improve our liquidity by selling some of the refurbished machines subsequent to year end.
Highlights in 2024 included the sale of the Mirabel facility which was completed with no meaningful loss to Argo's hash rate. The significant reduction in operating expenses in the first half of 2024 compared to 2022 and 2023, and the strong mining margin percentage despite the Bitcoin halving are indications of Argo's strong performance.
The Mirabel sale enabled the Company to de-lever the balance sheet with minimal impact to the Company's hash rate. Following the sale, Argo relocated the majority of the mining machines at Mirabel to its Baie Comeau facility and sold certain prior generation machines representing approximately 140 PH/s. The sale allowed the Company to streamline its operations by locating all self-mining machines at its Baie Comeau facility. Additionally, the sale of Mirabel reduces the Company's non-mining operating expenses by $0.7 million annually.
Argo has taken aggressive action on its cost structure and non-mining operating expenses. As compared to the second half of fiscal 2022, the Company has reduced its operating expenses by over 70%. The Company will continue to reduce headcount to decrease costs in the first half of 2025.
Despite the Bitcoin halving and the lower hash price realised since then, the Company maintained strong mining margins and its mining margin percentage has remained consistent with 2023. The first quarter of 2025 was a transition quarter for Argo as the Helios machines were refurbished and sent to new locations. We expect that as of 31 May 2025 we will have all of the Helios units either re-hosted or sold.
Growth and strategic partnerships
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Argo Blockchain plc published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 21:38 UTC.
