Argo Blockchain plc

Argo reported Q3 revenue of $7.5 million, down from $12.4 million in Q2 2024 and $10.4 million in Q3 2023. It mined 123 Bitcoin, or about 1.3 Bitcoin per day, and posted a mining margin of 8% versus 58% in the same period last year; nine-month revenue was $36.7 million versus $34.4 million last year. Net loss was $6.3 million for Q3 and $39.2 million for the nine months ended September 30, 2024; adjusted EBITDA was negative $2.1 million in Q3 and positive $3.9 million for the nine months. Management said it reduced debt by $12.4 million in the quarter by fully repaying the Galaxy loan, ended with $2.5 million in cash and four Bitcoin equivalents, and noted total non-mining operating expenses were down approximately 12% year over year. No formal revenue or EPS guidance was given; for HPC, management said it is aiming for a go-live in April 2025, or approximately the first half of 2025, and for Helios it said the hosting agreement ends in December 2024.

Thomas Chippas emphasized three priorities: financial discipline, operational excellence, and growth through strategic partnerships. He framed Q3 as a difficult post-halving period for the whole mining sector, but said Argo has remained resilient while positioning itself for growth through debt repayment and diversification. His tone was cautious but constructive, especially around the Baie-Comeau HPC opportunity and the potential to repurpose infrastructure for AI and data processing.

Jim MacCallum focused on the financial compression in Q3 and the work done to strengthen the balance sheet. He said revenue fell to $7.5 million from $12.4 million in Q2 and that mining margin dropped to 8% from 41% in Q2, while non-mining operating expenses were down about 12% year over year. He highlighted the full repayment of the $12.4 million Galaxy loan, saying it came four months ahead of schedule and nearly 18 months ahead of the original plan, and pointed to the remaining debt as $40 million in unsecured notes due in November 2026 plus a $1 million Baie-Comeau mortgage.

Analysts focused on what happens to the Helios fleet, with management saying the 2.4 exahash fleet remains under review after Galaxy declined to renew hosting beyond December 2024. They said Argo is considering alternative hosting, strategic opportunities, or a sale, and that the choice will depend on market dynamics and long-term value. Questions also centered on capital allocation and HPC execution, and management said its near-term focus is the Baie-Comeau HPC project, with advanced discussions, due diligence, financing evaluations, and a target to bring capabilities online by about April 2025.