REG - Argo Blockchain PLC - December Update/Management Change/Share Allotment

Argo BlockchainAnnouncement

08/01/2024 07:00

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RNS Number : 8690Y  Argo Blockchain PLC  08 January 2024

Press Release

8 January 2024

Argo Blockchain plc

("Argo" or "the Company")

December Operational Update

Change in Company Management

Share Allotment

Argo Blockchain plc, a global leader in cryptocurrency mining (LSE: ARB;
NASDAQ: ARBK), is pleased to provide the following operational update for
December 2023.

During the month of December, the Company mined 155 Bitcoin, or 5.0 Bitcoin
per day. This is a 4% increase in daily Bitcoin production compared to the
prior month, driven by increased transaction fees on the network, greater
operational efficiency and offset by an increase in network difficulty.

Mining revenue in December 2023 amounted to $6.6 million, an increase of 25%
compared to the prior month (November 2023: $5.3 million) and the highest
revenue month of 2023. December was the fourth consecutive month where revenue
grew by more than 18% month over month and daily Bitcoin production increased
month over month.

As of 31 December 2023, the Company held 9 Bitcoin on its balance sheet and
other digital assets worth the equivalent of 18 Bitcoin.

 Month           Bitcoin Mined  Unaudited Mining Revenue, excluding power credits ($USD in millions)((1))
 January 2023    168            $3.4
 February 2023   162            $3.8
 March 2023      161            $4.1
 April 2023      144            $4.2
 May 2023        173            $4.7
 June 2023       139            $3.8
 July 2023       129            $3.9
 August 2023     105            $2.9
 September 2023  136            $3.6
 October 2023    143            $4.3
 November 2023   145            $5.3
 December 2023   155            $6.6

((1))  The Company accrued power credits of $0.2 million, $1.3 million, and
$4.4 million in Q1 2023, Q2 2023, and Q3 2023, respectively. The preliminary
and unaudited estimate for Q4 2023 power credits is in the range of $0.5 to $1
million.

Management Commentary

Argo's Chief Executive, Thomas Chippas, said, "I am delighted to close out
2023 with our strong performance both in December and in the full fourth
quarter. During the fourth quarter, our daily production was 4.8 Bitcoin per
day, which was a 20% increase from the prior quarter. This is despite a 19%
increase in monthly average network difficulty in the fourth quarter compared
to the prior quarter."

Grant of Equity Awards

On 5 December 2023, the Company granted 1,379,727 Restricted Stock Units
("RSUs") in accordance with the 2022 Equity Incentive Plan approved by
shareholders at the Company's 2022 Annual General Meeting. The RSUs vest over
a three-year period, with first vesting occurring six months from the date of
grant (at which point 6/36ths vest) and, thereafter, the RSUs vest at a rate
of 3/36th per quarter for the remainder of the vesting period subject to the
continued employment of the grantee.

Change to Company Management and Share Allotment

Effective 5 January 2024, Seif El-Bakly stepped down from his position as
Chief Operating Officer to pursue other opportunities. The Company thanks Mr.
El-Bakly for leading Argo as Interim CEO from February to November 2023, and
it wishes him well. The operations team has been reporting to the Chief
Strategy Officer Sebastien Chalus since February 2023, and Mr. Chalus will
continue to oversee all operations going forward.

As part of Mr. El-Bakly's separation agreement, his previously awarded
Performance Share Units ("PSUs") will vest effective 5 January 2024. To
effectuate this vesting, the Company has issued 1,973,892 new ordinary shares
of £0.001 each in the capital of the Company ("PSU Shares").

The new PSU Shares will rank pari passu with the existing Ordinary Shares in
issue and application will be made for the new Ordinary Shares to be admitted
to the Official List and to trading on the Main Market of the London Stock
Exchange PLC ("PSU Admission"). PSU Admission is expected to occur, and
dealings in the new Ordinary Shares commence, on 11 January 2024.

Total Voting Rights

Following the PSU Admission, the Company will have a total of 538,937,363
Ordinary Shares in issue. No Ordinary Shares are held in treasury. The above
figure may be used by the Company's shareholders as the denominator for the
calculations by which they can determine whether they are required to notify
their interest in, or a change of their interest in, the Company under the FCA
Disclosure Guidance and Transparency Rules.

The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

 Argo Blockchain
 Investor Relations                  ir@argoblockchain.com
 Tennyson Securities
 Corporate Broker                    +44 207 186 9030

 Peter Krens
 Fortified Securities
 Joint Broker                        +44 7493 989014

 Guy Wheatley, CFA                   guy.wheatley@fortifiedsecurities.com
 Tancredi Intelligent Communication   argoblock@tancredigroup.com

 UK & Europe Media Relations

 

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain
technology company focused on large-scale cryptocurrency mining. With mining
facilities in Quebec, mining operations in Texas, and offices in the US,
Canada, and the UK, Argo's global, sustainable operations are predominantly
powered by renewable energy. In 2021, Argo became the first climate positive
cryptocurrency mining company, and a signatory to the Crypto Climate Accord.
For more information, visit (http://www.argoblockchain.com/)
www.argoblockchain.com (http://www.argoblockchain.com/) .

 

 

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