Argo Blockchain PLC · NASDAQ:ARBK
Argo Blockchain — Q2 2024 Earnings Presentation
24 slides from Argo Blockchain's earnings presentation, Aug 28, 2024
Slide 1: Argo Blockchain Q2 2024 Results
ARGO BLOCKCHAIN Q2 2024 Results August 28, 2024 www.argoblockchain.com 1 NASDAQ: ARBK; LSE: ARB
Slide 2: Legal Disclaimers
Legal Disclaimers Forward Looking Statements Non-IFRS Measures This presentation contains inside information and includes forward-looking statements This presentation contains references to certain non-IFRS measures including which reflect the Company's current views, interpretations, beliefs or exp
Slide 3: Today's Presenters
Today’s Presenters Thomas Chippas Jim MacCallum Chief Executive Officer Chief Financial Officer 3
Slide 4: Laying a Strong Foundation for Success
Laying a Strong Foundation for Success Financial Discipline Operational Excellence Key Pillars ₿ Growth & Strategic Partnerships 4
Slide 5: Macro Environment
Macro Environment Halving Halving 1. Source: Luxor's Bitcoin Hashprice Index as of 8/25/24 2. Source: On-Chain Data from CCData as of 8/25/24 5
Slide 6: Q2 2024 Results
Q2 2024 Results Revenue Power Credits ● Mined 188 Bitcoin, or ~ 2 BTC per day $17.6 $17.4 Adj. EBITDA ● Generated revenue of $12.4 million and $0.8 million $14.8 in power credits from economic curtailment in $13.6 $13.2 Texas $4.4 ● Mining profit of $5 million $16.2 $16.8 ● Mining margin of 41%, wit
Slide 7: Q2 2024 Results
Q2 2024 Results 1. Excludes depreciation 2. See Appendix for reconciliation of non-IFRS measures 7
Slide 8: Galaxy Secured Debt
Galaxy Secured Debt 1 $35 million of debt repayment since May 2023 1. Does not include $40 million of unsecured notes with maturity in November 2026, or $1.2 million in Quebec mortgage 8
Slide 9: Financial Discipline – Debt Reduction
Financial Discipline – Debt Reduction Debt Reduction ● Repaid Galaxy asset-backed loan of $35 million by 67 August 2024 % de bt red ● Cash balance at end of Q2 2024 was $4.0 million, uc tio supplemented by $8.3 million raise in July 2024. n1 Mirabel Sale - Transaction Overview ● Total consideration
Slide 10: Operational Excellence
Operational Excellence Optimizing Current Operations ● Streamlined Quebec operations by relocating all miners to Baie-Comeau Baie-Comeau ● Hashrate Capacity: ~0.3 EH/s ● Efficiency: 30 - 35 J/TH ● Fleet: ePIC BlockMiners Helios ● Hashrate Capacity: ~2.4 EH/s ● Efficiency: 30 - 35 J/TH ● Fleet: Bitma
Slide 11: Baie-Comeau Growth Opportunities
₿ Baie-Comeau Growth Opportunities Potential expansion from 15 to 23 MW Argo potential hashrate capacity ● Increase hashrate capacity by up to 0.7 EH/s ~4.1 EH/s ● Improve facility fleet efficiency to ~24 J/ TH1 Potential expansion from 15 to 23 MW and fleet refresh ~3.4 EH/s ● Increase hashrate cap
Slide 12: Growth & Strategic Partnerships
₿ Growth & Strategic Partnerships Bitcoin mining allows for instant monetization of energy ● Evaluating novel opportunities with power generators and utilities to help capture the full economic value or stranded energy ● Focus on access to low-cost and reliable power 12
Slide 13: Growth & Strategic Partnerships
₿ Growth & Strategic Partnerships Bitcoin mining is the ideal flexible load ● Transition to clean energy requires investment in the power grid and in demand response technology ● Bitcoin miners are exceptionally agile and well suited for load-balancing ● Mining can be seamlessly integrated with powe
Slide 14: Laying a Strong Foundation for Success
Laying a Strong Foundation for Success Financial Discipline Operational Excellence Key Pillars ₿ Growth & Strategic Partnerships 14
Slide 15: Appendix
Appendix 15
Slide 16: Income Statement
Income Statement 1. Net loss = Profit after taxation 16
Slide 17: Balance Sheet
Balance Sheet Current Assets Cash & cash equivalents 3,985 7,443 Digital assets 170 385 Assets held for sale - 3,261 Trade & other receivables 2,084 3,835 Total Current Assets 6,239 14,924 Property, plant, & equipment 26,171 59,728 Other non-current assets 921 1,288 Total Assets 33,331 75,940 Curren
Slide 18: Cash Flow Statement
Cash Flow Statement Cash flows from operating activities Loss before tax Adjustments for Depreciation/Amortisation Foreign exchange Loss on sole of property, plant and equipment Finance costs Gain on disposal of subsidiary and investment Fair value change in digital assets through profit or joss Rev
Slide 19: Appendix: Non-IFRS Reconciliation
Appendix: Non-IFRS Reconciliation The table above shows a reconciliation of mining profit to gross The table above shows a reconciliation of Adjusted EBITDA to net profit, the most directly comparable IFRS measure, for the periods income, the most directly comparable IFRS measure, for the ended June
Slide 20: Capital Structure (Unaudited)
Capital Structure (Unaudited) Capitalization Share Capital Outstanding Ordinary Shares: 636 million1 Employee Stock Awards: 39.2 million3 Warrants: 58 million Options: 5.8 million Tickers Equity Securities: LSE Ordinary Shares: ARB Nasdaq ADSs: ARBK OTC: ARBKF Debt Securities: Unsecured notes (Nasda
Slide 21: How Bitcoin is Mined
How Bitcoin is Mined Bitcoin transactions Once a block is Transactions are Verified transaction For solving the block, are pooled together formed, miners “verified” by the block is attached to miners are rewarded in a “block”. compete to solve it. network. a chain. with bitcoin. Currently, the rewar
Slide 22: Business Model in Bitcoin Mining
Business Model in Bitcoin Mining Electricity Computing Power Transaction Fees Electricity Cost Bitcoin Reward Power Source Mining Equipment Bitcoin Network Bitcoin Mining Considerations Revenue consists of block reward plus a transaction fee Costs include electricity and purchases of miners On avera
Slide 23: Calculating Gross Mining Profitability
Calculating Gross Mining Profitability The model Is formulaic 3.125 Bitcoin Mining Considerations Revenue consists of block reward plus a transaction fee Reward is dependent upon the difficulty set by the network hash rate versus Argo’s hash rate Number of block rewards is fixed Key costs of mining
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