Argo Blockchain stock down 22% as Q3 revenue disappoints
Between July and September 2024, Argo mined 123 BTC
The UK-based Bitcoin mining company Argo Blockchain released its Q3 2024 performance report, highlighting improved financial stability, but weaker results compared to the same period last year.
Between July and September 2024, Argo mined 123 BTC, averaging 1.3 BTC per day. However, quarterly revenue fell to $7.5 million, significantly below the $10.4 million reported in Q3 2023.
Mining margins also plummeted to 8% this quarter from 58% a year ago, largely due to the absence of energy credits that had bolstered Argo's performance in 2023.
A Tough Quarter with Mixed Outcomes
CEO Thomas Chipas acknowledged the challenges of Q3 but noted improvements in Bitcoin mining economics, citing the expansion of operations at the Baie-Comeau facility and opportunities to diversify revenue through AI-related computations.
Year-to-date revenue reached $36.7 million, slightly exceeding the $34.4 million reported during the first nine months of 2023. Additionally, Argo reduced its debt by $12.4 million, fully repaying a loan from Galaxy Digital. Net losses for the quarter narrowed to $6.3 million, an improvement over the $9.9 million loss recorded in Q3 2023.
By the end of the reporting period, Argo held $2.5 million in cash and 4 BTC.
Despite these mixed results, investors reacted negatively. According to Yahoo Finance, Argo's stock plunged over 22% on November 20, closing at $0.93.
As we wrote, British mining firm Argo Blockchain successfully generated £5.70 million ($7.50 million) through share placing.
With the fresh capital injection, Argo aims to strengthen its financial position, reduce debt, and continue its operations in the competitive industry.
