Argo Blockchain Plc

Argo Blockchain plc operates in the cryptocurrency mining industry, specifically focusing on mining Bitcoin and other crypto assets ¹. The company's core business model revolves around using purpose-built computers, or mining machines, to solve complex cryptographic algorithms on the blockchain in exchange for rewards and fees denominated in the native asset of that blockchain network ². The company generates substantially all of its revenue from cryptocurrency rewards and transaction fees received for successfully proposing a valid "block" of transactions on the Bitcoin blockchain ³. Its primary customer segments are not explicitly detailed, but the revenue generation indicates a reliance on the broader cryptocurrency ecosystem and the demand for Bitcoin. The company's treasury management strategy in 2023, 2024, and 2025 was to sell mined Bitcoin on a weekly basis to fund operating expenses and for working capital needs ⁴.

The company's mining fleet primarily consists of Bitmain Antminer S19, S19 Pro, S19J Pro, MicroBT M60S, Antiminer Z11, and ePIC BlockMiners, all utilizing advanced application-specific-integrated-circuits (ASICs) ⁵. As of December 31, 2025, the active fleet comprised 21,230 ASICs-based miners ⁶. The company contributes 100% of its hash power to third-party mining pools, including Luxor Pool, with the decision based primarily on the net payout per petahash contributed ⁷. Fees for mining pools typically fluctuate and are less than 2% per reward earned, on average ⁸.

For the fiscal year ended December 31, 2025, Argo Blockchain plc reported total revenue of $15,521 thousand ⁹. The gross profit for the same period was $287 thousand, resulting in a gross margin of 2% ¹⁰. The operating loss was $13,399 thousand ¹¹. The company reported a profit before taxation of $4,672 thousand ¹² and a gain after taxation of $5,084 thousand ¹³. Total comprehensive income for the year was $4,594 thousand ¹⁴. The company's cash and cash equivalents decreased by $6,329 thousand ¹⁵ during 2025. As of December 31, 2025, the company's remaining debt consisted of a mortgage of $438 thousand ¹⁶, which is expected to be fully repaid by the end of 2026 ¹⁷.

Comparing year-over-year, total revenue decreased by $31,496 thousand from $47,017 thousand in 2024 to $15,521 thousand in 2025 ¹⁸. This decline was primarily due to the Bitcoin halving event on April 19, 2024, which reduced block rewards to 3.125 Bitcoin per block ¹⁹. Bitcoin mined decreased from 755 in 2024 to 150 in 2025 ²⁰. Power and hosting costs decreased by $20,258 thousand to $12,629 thousand in 2025 from $32,887 thousand in 2024 ²¹, attributed to optimizing operations and a reduction in the mining fleet ²². Power credits, which were approximately $1.5 million in 2024, were not generated in 2025 following the end of the Galaxy hosting agreement ²³. Depreciation of mining equipment decreased by $11,566 thousand to $2,605 thousand in 2025 from $14,171 thousand in 2024, driven by the lower book value of machines after sales and impairments ²⁴. Operating expenses decreased by $1,486 thousand to $11,050 thousand in 2025 from $12,536 thousand in 2024, primarily due to a focus on reducing non-mining operating expenses, though restructuring-related costs kept overall expenses broadly consistent ²⁵. Finance costs decreased by $2,608 thousand to $4,202 thousand in 2025 from $6,810 thousand in 2024, due to a significant reduction of debt ²⁶.

During 2025, the company completed a comprehensive restructuring which materially repositioned its balance sheet, resulting in the elimination of approximately $40.0 million of baby bond debt, the injection of approximately $3.5 million of new capital, and the conversion of certain liabilities into equity ²⁷. The company also sold 8,643 mining machines for total proceeds of approximately $2.4 million to support liquidity ²⁸. In 2025, the Group signed hosting agreements with Merkle Standard LLC to host 9,315 miners at Merkle's Memphis, Tennessee location and up to 4,000 machines at its Washington state location ²⁹. These hosting agreements ended in March and April of 2026, respectively ³⁰. Approximately 1,232 units will be sent to the Group's Baie Comeau facility, and a further 8,000 units were sold for cash proceeds of approximately $2.0 million ³¹.

Management believes the Company has sufficient liquidity to continue as a going concern for at least twelve months from the date of approval of these financial statements, supported by its improved capital structure following the December 2025 restructuring and the availability of committed funding under a $5.0 million subscription facility with its controlling shareholder, Growler, of which $2.5 million has been drawn subsequent to year end ³². The company's remaining debt, a mortgage facility of $438 thousand ³³, is expected to be fully repaid by the end of 2026, after which the company expects to be debt free ³⁴. Other liabilities of approximately $1.2 million outstanding at year end were subsequently settled through the issuance of equity ³⁵.

The company continues to explore opportunities where mining can be paired with stranded or wasted energy, recognizing the potential for energy generators to utilize mining as a balancing and optimization tool, particularly in the energy transition where limitations exist in storing renewable energy ³⁶. The company also has the ability to expand its power capacity at the Baie Comeau facility from 15 MW to 23 MW if the local municipality awards a contract for the expansion ³⁷. Over the long term, the company's strategy is to diversify its sources of revenue and value creation by investing in and developing other commercial opportunities at the intersection of energy, finance, and technology ³⁸.

The company's operational outlook includes a continued focus on financial discipline, which has seen non-mining operating expenses reduced by 58% in 2023 compared to 2022, with further reductions of 34% in 2024 ³⁹. The company also reduced its debt by $13 million in 2023 and fully repaid its Galaxy debt in 2024 ⁴⁰. The company anticipates that it will continue to evaluate opportunities to optimize and integrate its operations, including with respect to both the software utilized by its fleet and the associated hardware ⁴¹.

Planned capital allocation for 2025 included $126 thousand spent on improvements to property ⁴². The company's primary requirements for capital are to fund working capital, capital expenditures, and general corporate purposes ⁴³. The company may, from time to time, seek additional capital through equity or other financing arrangements to support strategic initiatives and enhance financial flexibility, subject to market conditions ⁴⁴.

Management explicitly flagged several structural headwinds and execution risks. The company remains exposed to volatility in cryptocurrency markets and energy costs ⁴⁵. The most recent halving for Bitcoin occurred on April 19, 2024, reducing the reward to 3.125 Bitcoin per block ⁴⁶, which has significantly impacted revenue and mining economics ⁴⁷. The company's hosting agreements with Merkle Standard LLC for 9,315 miners in Memphis, Tennessee, and up to 4,000 machines in Washington state, ended in March and April of 2026, respectively ⁴⁸. In Quebec, Hydro-Quebec proposed changes to electricity rate structures in 2026 applicable to large data centers and cryptographic use, which could result in materially higher electricity rates and adversely affect the economic viability of current or future mining deployments in Quebec ⁴⁹.

The company faces material risks including its ability to continue as a going concern, which depends on continued support from its controlling shareholder, Growler Mining Tuscaloosa, LLC ⁵⁰. The total revenue and cash flow are substantially dependent on the market value and volume of digital assets, particularly Bitcoin, which are highly volatile ⁵¹. There are risks related to technological obsolescence, global supply chain disruptions for mining hardware, and difficulty in obtaining new mining machines ⁵². The company is subject to an uncertain and evolving regulatory environment, with potential for new or changed regulations, including those related to data privacy, anti-corruption, anti-money laundering, and the classification of digital assets as securities, which could lead to significant fines or operational restrictions ⁵³. Geopolitical and economic events can impact the supply and demand for digital assets, and the emergence or growth of other digital assets, including central bank digital currencies (CBDCs), could negatively affect Bitcoin's price ⁵⁴. Operational risks include damages to mining facilities and equipment, which may not be covered by insurance, and reliance on third-party mining pool operators for rewards ⁵⁵. The company is also exposed to nonperformance risk by counterparties in power supply arrangements ⁵⁶. In Quebec, proposed changes to electricity rate structures by Hydro-Quebec in 2026 could lead to materially higher electricity costs, impacting the economic viability of operations there ⁵⁷.

Management's message to shareholders emphasizes a focus on financial discipline, operational excellence, and strategic partnerships for growth. The company has made significant progress in reducing its cost base, with non-mining operating expenses reduced by 58% in 2023 compared to 2022, and a further 34% reduction in 2024 ⁵⁸. Debt was reduced by $13 million in 2023, and Galaxy debt was fully repaid in 2024 ⁵⁹. The comprehensive restructuring in December 2025 eliminated approximately $40.0 million of baby bond debt, injected approximately $3.5 million of new capital, and converted certain liabilities into equity ⁶⁰. Management believes the company has sufficient liquidity to continue as a going concern for at least twelve months from the date of approval of these financial statements, supported by current cash resources, expected cash flows from operations, and committed funding under a $5.0 million subscription facility with its controlling shareholder, Growler, of which $2.5 million has been drawn subsequent to year end ⁶¹. The company's strategic priorities include maintaining a balance between owned and operated mining facilities and utilizing third-party sites, emphasizing sustainability by relying on renewable power sources, and diversifying revenue sources by investing in other commercial opportunities at the intersection of energy, finance, and technology ⁶².