Argo Blockchain PLC - London-based blockchain technology company - Swings to interim loss as cites "global macroeconomic pullback" and inflation as reasons.
In the six months to June 30, turns to pretax loss of GBP36.9 million from a profit of GBP10.7 million a year prior. Revenue drops 14% to GBP26.7 million from GBP31.1 million."During the period, there has been a global macroeconomic pullback as investors and central bankers grapple with inflation, the war in Ukraine, and rising interest rates. These headwinds have impacted all financial assets, including Bitcoin and the equity of publicly traded Bitcoin miners" firm explains.
Notes sale of bitcoin at an average realised price of USD28,500, a hedge gain of about USD1,500 per bitcoin.
"Proceeds from these sales have been used for operating expenses, capital expenditures, and to reduce exposure on our bitcoin-backed loan," Chief Executive Officer & interim Executive Chair Peter Wall states.
Firm sees itself in a good position to "weather the current downturn with its large and highly efficient mining infrastructure, runway for growth, and experienced management team, which has successfully navigated the group through previous crypto winters."
Current stock price: 41.50 pence, up 1.2% on Thursday
12-month change: down 70%
By Tom Budszus; tombudszus@alliancenews.com
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Argo Blockchai. (ARB)