Argo Blockchain : Q3 2023 Earnings Presentation

ARGO BLOCKCHAIN

Q3 2023 Results

November 14, 2023

argoblockchain.com

1 NASDAQ: ARBK; LSE: ARB

LEGAL DISCLAIMERS

Forward Looking Statements

This presentation contains inside information and includes forward-looking statements which reflect the Company's current views, interpretations, beliefs or expectations with respect to the Company's financial performance, business strategy and plans and objectives of management for future operations. These statements include forward-looking statements both with respect to the Company and the sector and industry in which the Company operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue", "estimate", "future", "opportunity", "potential" or, in each case, their negatives, and similar statements of a future or forward-lookingnature identify forward-lookingstatements. All forward-lookingstatements address matters that involve risks and uncertainties because they relate to events that may or may not occur in the future, including the risk that the Company may not receive the benefits contemplated by its transactions with Galaxy, the Company may be unable to secure sufficient additional financing to meet its operating needs, and the Company may not generate sufficient working capital to fund its operations for the next twelve months as contemplated. Forward-lookingstatements are not guarantees of future performance. Accordingly, there are or will be important factors that could cause the Company's actual results, prospects and performance to differ materially from those indicated in these statements. In addition, even if the Company's actual results, prospects and performance are consistent with the forward-looking statements contained in this document, those results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this presentation. Subject to any obligations under the Prospectus Regulation Rules, the Market Abuse Regulation, the Listing Rules and the Disclosure and Transparency Rules and except as required by the FCA, the London Stock Exchange, the City Code or applicable law and regulations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. For a more complete discussion of factors that could cause our actual results to differ from those described in this presentation, please refer to the filings that Company makes from time to time with the United States Securities and Exchange Commission and the United Kingdom Financial Conduct Authority, including the section entitled "Risk Factors" in the 2 Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2022.

Non-IFRS Measures

This presentation contains references to certain non-IFRS measures including Adjusted EBITDA and mining margin, each of which are not recognized under International Financial Reporting Standards ("IFRS"). Our management team uses these non-IFRS financial measures to evaluate our profitability and efficiency, to compare operating results to prior periods, and to measure and allocate financial resources internally. The Company believes that these non-IFRS financial measures may be helpful to investors because they provide consistency and comparability with past financial performance and may assist in comparisons with other companies, some of which use similar non-IFRS financial information to supplement their IFRS results. The non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly titled non-IFRS measures used by other companies. Adjusted EBITDA and mining margin each have limitations as analytical tools, and you should not consider any of these measures either in isolation or as a substitute for other methods of analyzing the results as reported under IFRS.

Today's Presenters

Seif El-Bakly	Jim MacCallum
Interim Chief Executive Officer /	Chief Financial Officer
Chief Operating Officer

3

Laying a Strong Foundation for Success

Financial Discipline

Operational Excellence

Key Pillars

₿	Growth & Strategic Partnerships

4

Macro Environment

Avg:

$74

Avg:

$67

Avg:

$62

Avg:

$64

• Sustained increase in global hashrate
• Bitcoin prices relatively flat relative to Q2
• Seasonality in network hashrate during summer months
• Recent increases in BTC price, transaction fees, and hash price
• Near term catalysts for BTC price
• • Spot Bitcoin ETF approval
  • Halving event in April 2023

5

Q3 2023 Results (Unaudited)

• Mined 370 Bitcoin, or 4.0 BTC per day
• Generated revenue of $10.4 million
• Accrued ~$4.4 million in power credits from economic curtailment in Texas
• Q3'23: Mining margin of 58%, with an average direct cost per Bitcoin mined of $11,736
• Adjusted EBITDA of $3.1 million1 ($5.3 million for 9M 2023)
• Raised $7.5 million in gross proceeds via equity raise with UK institutional investors
• Reduced Galaxy debt by $5 million
• Ended the quarter with $8.0 million of cash

Mining Margin

6

Mining Revenue and Power Credits ($m)

Revenue
Power Credits	$14.8
	$13.6
$11.7
	$12.6
$11.4				$10.4
Q1'23		Q2'23	Q3'23
	Adjusted EBITDA ($m)	$3.1
$1.3	$1.1

Q1'23 Q2'23 Q3'23

49%

36%

58%

1. See Appendix for reconciliation of non-IFRS measures

Curtailment of Miners in Texas

7

Source: ERCOT

Q3 2023 Results (cont.)

$ in millions	Q3'23	Q2'23	% Change
Revenue	$10.4	$12.6	(17)%
Direct costs, net	(4.3)	(8.0)	(46)%
Mining Profit	$6.1	$4.5	33%
Mining Margin	58%	36%
Percentage
Non-recurring costs	$1.5	$0.6	157%
Non-mining operating	$3.1	$3.5	(11)%
expenses1
Total non-mining operating	$4.6	$4.1	13%
expenses
Adjusted EBITDA2	$3.1	$1.1	161%
			2
Ending Cash Balance	$8.0	$9.1

1.

Excludes depreciation

8

2. See Appendix for reconciliation of non-IFRS measures

Financial Discipline - Cash Position

Focused on cash flow generation

1

9

1. Net cash proceeds from the equity raise were $7.0 million

Financial Discipline - Cost Reduction

Cost reduction improves cash flow generation and strengthens balance sheet

$16.5

Non-Mining Operating Expenses ($M)

$10.7

H2 2022

Quarterly

Average

$5.2

$4.4

Q1 2023

10

$4.1

$3.5

Q2 2023

Non-mining operating expenses Non-recurring costs

$4.6

$3.1

Q3 2023