May Operational Update

Press Release

03 June 2020

Argo Blockchain PLC

('Argo' or 'The Company') 

May Operational Update

This announcement contains inside information

Argo, the leading cryptocurrency miner based in the UK (LSE:ARB), is pleased to provide the following operational update for May 2020.

May was a significant month for Bitcoin because of the block reward halving on 11 May. A Bitcoin halving is a periodic event that cuts the amount of Bitcoin rewarded for mining a block in half. This change occurs at every 210 000 blocks mined or approximately every four years. A halving reduces the rate at which new Bitcoin is released into circulation and steadily reduces the total supply of new Bitcoin until all 21 million are released. Historically, halvings have reduced the level of inflation and have helped drive up the value of Bitcoin, thus maintaining an incentive for the most efficient miners to remain active, while older, less efficient miners become less profitable and exit the market.

During the month of May, Argo mined 252 Bitcoin or Bitcoin Equivalent (BTC) compared to 319 Bitcoin Equivalent in April. This takes the total amount of BTC mined in the first five months of this year to 1,489 BTC. The reduction in the number of coins mined month to month was largely a result of the halving. 

Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in May amounted to £1.93 million (April 2020: £1.8 million).  Argo generated this income at an average monthly mining margin of approximately 34% for the month of May which is an aggregate of both pre- and post-halving mining rates (April 2020: 39%). Argo's investment in state-of-the-art new generation mining machines ensured that the Company was able to navigate the halving without any disruptions to its mining operations.  

At month-end the Company held 117 BTC in Bitcoin equivalents, in accordance with the Company's asset management strategy.

Argo's total mining capacity stands at 18,000 machines and 730 Petahash, a 244% increase in hashpower from the end of last year. In addition, the company has 200 Megasols of equihash mining capacity. 

Peter Wall, Chief Executive Officer of Argo, said: "We were well prepared for the halving and our healthy mining margin post-halving shows that Argo was extremely well-positioned for this event. We believe Argo remains one of the most efficient publicly-traded cryptocurrency miners. This week will see another BTC mining difficulty adjustment and we expect a further drop of between 4-6% in difficulty based on current hashrate and projections. This change is expected to result in improvements to our overall mining margins." 

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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.

argoblockchain.com

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