Argo Blockchain PLC · NASDAQ:ARBK
Argo Blockchain — Investor Presentation (September 2022)
27 slides from Argo Blockchain's investor presentation, September 2022
Slide 1: Argo Blockchain Investor Presentation September 2022
ARGO BLOCKCHAIN We power the world’s most innovative and sustainable Investor Presentation blockchain infrastructure September 2022 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 Adjusted which reflect the Company's or, as appropriate, the Directors' cu
Slide 3: Argo at-a-glance
Argo at-a-glance Industry-leading cryptocurrency miner with a focus on sustainability 3.2 EH/s 100% TEXAS QUEBEC Mining capacity Carbon neutral4 (SHA-256)1 Lubbock 220 MW 1,098 Helios Dallas Total Power Capacity HODL of Bitcoin and (megawatts) Bitcoin Equivalents5 Houston 71% ~22% HODL Baie Comeau I
Slide 4: Track Record of Execution
Track Record of Execution Significant scaling since inception and clear visibility to continued growth Texas facility online in May 2022 4.1 EH/s1 Acquired 160 acres to build 200 MW facility in Texas, as well as two Quebec data centers1 1.6 EH/s Diversified into digital Pivoted from MaaS to blockcha
Slide 5: Access to Low Cost and Renewable Power
Access to Low Cost and Renewable Power Solidifying Quebec While Expanding to Texas Quebec West Texas Attractiveness Renewable Energy Clean, cheap hydroelectricity Largest wind generator with low electricity rates Large clean energy surplus Significant excess / unused capacity Low cost (~4 cents / kW
Slide 6: Helios: Flagship Mining Facility in West Texas
Helios: Flagship Mining Facility in West Texas Mining operations commenced in May 2022 126,000 sq ft data center in Dickens County, TX 800 MW interconnection agreement from neighboring substation Installation of miners to continue through Q1 2023 ~50 full time jobs at the site and in community 6
Slide 7: Industrial Scale Deployment of Immersion Cooling
Industrial Scale Deployment of Immersion Cooling Ideal technology for Texas Panhandle conditions Proprietary system design Fabricated in US by global manufacturer Uplift in hashrate and longer machine life 7
Slide 8: Blockscale ASIC Supply Agreement with Intel
Blockscale ASIC Supply Agreement with Intel Intel Launches New Intel Blockscale Technology Diversifies ASIC supply chain to include top US for Energy-Efficient Blockchain Hashing semiconductor manufacturer Argo has rights to pro-rata share of production ePIC Blockchain Technologies is helping with t
Slide 9: A Look Ahead at Helios Phase 1 (200 MW)
A Look Ahead at Helios Phase 1 (200 MW) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Installation of immersion equipment Installation of Core Scientific ”swap machines” Installation of Bitmain order Energization Design phase for Intel ASIC-based machines Manufactur
Slide 10: Total Hashrate Capacity Guidance
Total Hashrate Capacity Guidance Existing fleet 4.1 EH/s Bitmain S19J Pros1 Intel ASIC machines in development2 0.9 EH/s 3.2 EH/s 2.9 EH/s 1.0 EH/s 1.0 EH/s 2.2 EH/s 0.7 EH/s 2.2 EH/s 2.2 EH/s 2.2 EH/s 2.2 EH/s 2.2 EH/s Q2 2022 Q3 2022E Q4 2022E Q1 2023E 1. Hashrate does not include potential uplift
Slide 11: Poised for exponential hashrate growth
Poised for exponential hashrate growth ~20 EH/s1 Up to 600 MW of additional power capacity at Helios ASIC chip supply agreement with Intel Runway to grow hashrate to ~20 EH/s over the next few years Phase 1 of Helios online 3.2 EH/s 1.6 EH/s 0.6 EH/s 0.2 EH/s 2019 2020 2021 2022E 2024E 1. Argo does
Slide 12: Argo Labs: In-House Innovation Arm
Argo Labs: In-House Innovation Arm Five person team led by Sebastien Chalus (Chief Strategy Officer) Participate in disruptive sectors of the broader blockchain and Web 3.0 ecosystem Increase shareholder value through strategic diversification and network participation Currently managing ~22% of Arg
Slide 13: Argo's Commitment to Sustainability
Argo’s Commitment to Sustainability Mining with carbon-neutral energy Quebec facilities powered by hydro electricity Helios facility in Texas is in West Load Zone - high amount of wind power generation Helios will help to stabilize the Texas electric grid Local, flexible demand in a region with exce
Slide 14: Recent Social & Governance Initiatives
Recent Social & Governance Initiatives Helios is bringing benefits to Dickens County 130 construction jobs; ~50 full time jobs for Phase 1 Refurbishing community swimming pool Strengthened Board of Directors with new members Raghav Chopra: Strong background in capital markets Artist rendering of ref
Slide 15: Track Record of Growth
$100.1 Track Record of Growth 1 Revenue & Adj. EBITDA ($millions) 200MW of additional capacity in 2022 will drive top line growth $72.4 GR CA 0% 35 $25.6 $11.6 $7.9 $1.1 $1.4 FY 2018 FY 2019 FY 2020 FY 2021 ($5.2) 15 Revenue Adj. EBITDA 1. Please see Appendix for reconciliation of non-IFRS measures
Slide 16: Argo is one of the most efficient, sustainable, and forward-thinking miners
Argo is one of the most efficient, sustainable, and forward-thinking miners in the world Helios and Intel chip supply agreement are near-term catalysts for growth Leader in sustainable mining at scale Best in class mining margins Exceptional team of crypto natives, with track record of execution 16
Slide 17: Appendix
Appendix 17
Slide 18: Income Statement
Income Statement (000s unless otherwise stated) Three months ended June 30, 20221 Six months ended June 30, 20221 $ £ $ £ Revenues $14,396 £11,838 $32,470 £26,700 Direct costs (5,307) (4,364) (9,563) (7,864) Depreciation of mining equipment (6,750) (5,551) (13,197) (10,852) Change in fair value of d
Slide 19: Industry Leading Profitability Margins
Industry Leading Profitability Margins Mining Margin (1H 2022) 1,2,3 71% Low operating costs protect margins amidst Peer Average BTC volatility 61% Optimize capex and minimize depreciation through strategic sourcing ROI discipline / tight payback periods on acquired machines 1. Data derived from pub
Slide 20: Balance Sheet
Balance Sheet (000s unless otherwise stated) As of June 30, 2022(1) As of March 31, 2022(1) $ £ $ £ Current Assets Digital assets 34,162 28,092 97,091 79,839 Cash & cash equivalents 11,200 9,210 11,025 9,066 Trade & other receivables 120,938 99,448 103,263 84,914 Total Current Assets $166,301 £136,7
Slide 21: Appendix: Non-IFRS Reconciliations
Appendix: Non-IFRS Reconciliations The following table shows a reconciliation of Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the three months ended June 30, 2022 and the six months ended June 30, 2022. (000s unless otherwise stated) Th
Slide 22: 2021 GHG Report Results
2021 GHG Report Results 01 02 03 Argo intentionally locates Most of Argo’s GHG emissions Scope 3 GHG emissions come operations on grids with low (66%) come from Scope 2 mostly from fuel and energy carbon emissions. Argo does (electricity use). related activities and not produce Scope 1 emissions. up
Slide 23: 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 24: 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 25: Calculating Gross Mining Profitability
Calculating Gross Mining Profitability The Model Is Formulaic 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 includ
Slide 26: Key Management and Board of Directors
Key Management Peter Wall Alex Appleton Seb Chalus Perry Hothi Seif El-Bakly Justin Nolan Davis Zapffe Chief Executive Officer Chief Financial Officer Chief Strategy Officer Chief Technology Officer Chief Operating Officer Chief Growth Officer General Counsel Board of Directors Peter Wall Alex Apple
Slide 27: We power the world's most innovative and sustainable blockchain infrastructure
We power the world’s most innovative and sustainable blockchain infrastructure. argoblockchain.com 27
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