Argo Blockchain has reported a significant drop in Q3 revenue, reflecting ongoing challenges in the crypto mining industry.
Financial Results
Argo Blockchain reported quarterly revenue of $7.5 million, down 28% from the same period last year. Total revenue for the first nine months of 2024 was $36.7 million, slightly up from $34.4 million in 2023. The firm mined 123 BTC during the quarter, averaging 1.3 BTC per day.
Profit and Loss Changes
Mining margins fell to 8% in Q3, down from 58% the previous year, largely due to the absence of power credits that had boosted 2023 results. The company's net loss was $6.3 million for the quarter, an improvement from a $9.9 million loss in Q3 2023.
Strategic Adjustments
Amid the news, Argo Blockchain shares plunged nearly 19% on over-the-counter trades. The company reduced its debt by $12.4 million, including full repayment of a loan from Galaxy Digital. It ended the period with $2.5 million in cash and 4 BTC. CEO Thomas Chippas noted that despite Q3 challenges, recent improvements in Bitcoin mining economics and the HPC hosting opportunity at Baie-Comeau demonstrate the firm's ability to diversify its capabilities beyond BTC into the growing AI computational market.
Despite current financial challenges, Argo Blockchain is taking steps to diversify its operations, potentially positively impacting the company's future.
