The Argo Blockchain PLC (LON: ARB) share price fell 5.22% after releasing its unaudited results for the first quarter of 2023 ended on 31 March 2023. The company generated revenues worth $11.4 million, marking a 15% improvement compared to Q1 2022. However, it reported a net loss of $8.7 million.
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The Bitcoin mining company mined 491 BTC during the three months translating into 5.3 BTC daily as mining difficulty increased. The company’s mining margin percentages rose to 49% during the quarter marking a decent increase from the 35% mining margin percentage recorded in Q4 2022.
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The company also highlighted its commitment to reducing operating costs by cutting 70% of its expenses compared to Q1 2022. The firm reiterated its commitment to strengthening its balance sheet after appointing a substantive CFO. Argo earned an adjusted pretax profit of $1.6 million.
Argo Blockchain also highlighted the transition of the Helios facility to Galaxy Digital following the bailout that allowed it to remain solvent. The company also noted that the all-in price of power and hosting was lower than its initial expectations, reaching $0.05 – $0.055 per kilowatt-hour during the quarter.
The Bitcoin miner was holding 85 Bitcoin or Bitcoin Equivalent (BTC) as part of its HODL strategy and had cash reserves of $14.2 million on its balance sheet at the end of the quarter.
Seif El-Bakly, Argo Blockchain’s Interim CEO, said: “The Argo team is moving ahead with a focus on financial discipline, operational excellence, and growth and strategic partnerships. To support these initiatives, we recently strengthened our finance team and appointed Jim MacCallum, CPA, CFA, as Chief Financial Officer.”
Adding:
“In terms of financial discipline, we are taking a much more critical view of all operating expenses, and we’ve implemented a robust internal process aimed at reducing non-mining operating expenses. Compared to 2022, we’ve reduced our expenses by 70%. We are also evaluating options to strengthen our balance sheet.”
Argo Blockchain shares are up 29.51% this year as the company continues to recover from the massive decline witnessed last year.
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Argo Blockchain share price.
The Argo Blockchain share price fell 5.22% to trade at 8.649p, from Monday’s closing price of 9.125p.
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