Argo Blockchain reports strong revenue in 2021 audited results
(LSE: ARB, NASDAQ: ARBK ) has today announced annual audited results for the year ended 31 December 2021. Strong revenue was partially driven by the development Argo's Helios facility in Texas and dual listing on NASDAQ in early 2021.
The London-based crypto mining company reported much higher numbers YoY in 2021. Revenue rose 291% to £74.2m, mining margin was at 84% vs. 41% in 2020, and EBITDA was £52.9m, a 594% increase YoY from 2020.
Furthermore, net income rose 2,033% to £30.8m from £1.4m in 2020, cash and digital assets on 31 December 2021 amounted to £92.6m, and total number of Bitcoin mined was 2,045. On 31 March 2022, the Company held 2,700 Bitcoin or equivalent, worth £93.6m on that day.
Revenue growth was driven by a substantial increase in 's computational capacity (hashrate), higher Bitcoin prices in 2021, and a temporary drop in difficulty of the Bitcoin mining algorithm.
Argo expanded its footprint significantly in 2021:
The Company is developing its Helios project in Texas which will boast 800 MW of power capacity, with Phase 1 (200 MW) expected to go live in May 2022. also acquired two data centres in Quebec with a combined 20 MW of capacity.
Furthermore, the Company purchased 20,000 Bitmain S19J Pro mining machines, expected to be delivered between May and October 2022. In total, expanded its mining rate from 0.6 Exahash/s (EH/s) to 1.6 EH/s.
To meet its targets, raised £49.2m of new equity in Q1 via private placement; £94.8m in Q3 via a public offering on the NASDAQ, significantly expanding access to investors; and £29.6m in Q4 via unsecured debt through the issuance of senior notes on the NASDAQ.
Since the beginning of the year, Argo has signed a supply agreement with Intel to purchase ASIC chips (dedicated mining silicon); launched Argo Labs, an in-house innovation arm; raised £19.8m in debt secured by its Helios infrastructure; and executed a hardware swap to ensure it had no machines hosted at 3rd party facilities. This is in keeping with the Company's goal of complete vertical integration.
expects the aforementioned investments to result in 5.5 EH/s hashrate capacity by the end of 2022, a significant increase from 1.6 EH/s at the end of 2021. Beyond 2022, hashrate is projected to grow even further to 20 EH/s as Helios' 600 MW capacity is fully developed.
Peter Wall, CEO, commented on the results: "2021 was truly a year of transformation for Argo as we accomplished key milestones to strengthen the foundation of the Group and position us for long-term success through the acquisition of the Helios project and our dual listing on Nasdaq.
"The acquisition of Helios provided us with the opportunity to build a best-in-class, vertically-integrated facility with access to low-cost and sustainable electricity, which is unmatched by our peers. With our mining operations at Helios expected to commence in May, along with the development of custom mining machines using Intel's next-generation Blockscale ASIC chips, Argo is well-positioned to continue its growth with a focus on delivering for our shareholders. Onwards and upwards."
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