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Argo Blockchain PLC Announces September Operational Update

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LONDON, UK / ACCESSWIRE / October 7, 2021 / Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to provide the following operational update for September.

During the month of September, Argo mined 165 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 206 BTC in August. This brings the total amount of BTC mined year-to-date to 1479 BTC.

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in September amounted to £5.50 million ($7.59 million*) (August 2021: £6.83 million ($9.43 million*)). Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 84% for the month of September (August 2021: 86%). The Company has maintained consistent Bitcoin and Bitcoin Equivalent Mining Margins despite increases in network difficulty since July 2021.

At the end of September, the Company owned 1836 Bitcoin or BTC equivalent.

Non-IFRS Measures

Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin has limitations as an analytical tool. In particular, Bitcoin and Bitcoin Equivalent Mining Margin excludes the depreciation of mining equipment and so does not reflect the full cost of our mining operations, and it also excludes the effects of fluctuations in the value of digital currencies and realized losses on the sale of digital assets, which affect our IFRS gross profit. This measure should not be considered as an alternative to gross margin determined in accordance with IFRS, or other IFRS measures. This measure is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, our gross margin as determined in accordance with IFRS.

The following table shows a reconciliation of Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the months of August and September 2021.

Month Ended 31 August 2021

Month Ended 30 September 2021

£

$

£

$

Gross Profit

10,427,53

14,396,250

108,284

149,497

Gross Margin¹

145%

145%

2%

2%

Depreciation of mining equipment

846,382

1,168,515

770,006

1,063,070

Charge in fair value of digital currencies

(4,736,507)

(6,539,222)

4,130,925

5,703,155

Realised profit on sale of digital currencies

(305,366)

(421,588)

(74,582)

(102,968)

Crypto-currency management fees

(327,652)

(452,356)

(298,136)

(411,607)

Mining Profit

5,904,388

8,151,599

4,636,497

6,401,147

Bitcoin and Bitcoin Equivalent Mining Margin

86%

86%

84%

84%

(1) Due to favourable changes in fair value of Bitcoin and Bitcoin Equivalents in August and September 2021, gross profit exceeded revenue in both periods.

*Dollar values translated from pound sterling into U.S. dollars at the rate of £1.00 to $1.38, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2021.

This announcement contains inside information.

For further information please contact:

Argo Blockchain

Peter Wall

Chief Executive

via Tancredi +44 203 434 2334

finnCap Ltd

Corporate Finance

Jonny Franklin-Adams

Tim Harper

Joint Corporate Broker

Sunila de Silva

+44 207 220 0500

Tennyson Securities

Joint Corporate Broker

Peter Krens

+44 207 186 9030

OTC Markets

Jonathan Dickson

jonathan@otcmarkets.com

+44 204 526 4581

+44 7731 815 896

Tancredi Intelligent Communication

UK & Europe Media Relations

Emma Valgimigli

Emma Hodges

Salamander Davoudi

argoblock@tancredigroup.com

+44 7727 180 873

+44 7861 995 628

+44 7957 549 906

About Argo:

Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB and on the Nasdaq Global Select Market in the United States under the ticker: ARBK.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Argo Blockchain PLC



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