Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) reported a 24% increase in first-quarter earnings on revenues up 9% as it increased it mining hashrate and prepared to begin operations at the cutting-edge Helios facility in Texas, which opened this month.
The cryptocurrency miner generated underlying earnings (adjusted EBITDA) of US$19.1mln (£14.5mln) for the first three months of 2022, compared to US$15.4mln a year earlier.
Revenue of US$19.5mln was up from US$17.8mln, which was attributed to an improved hash rate over the past year, partially offset by lower bitcoin prices in the recent quarter.
Showing this more starkly, net income of US$2.1mln compared to US$25.3mln a year ago, when bitcoin ended the period at almost US$59,000.
Total bitcoin mined in the quarter increased 21% to 470 bitcoin and equivalents (together, BTC), compared to 387 BTC mined in the same period in 2021, with a mining margin of 76% equating to a cost of US$9,779 per bitcoin mined.
With the Helios facility having started bitcoin mining activities on 5 May 2022, Argo expects to increase its hashrate to 5.5 exahash per second (EH/s) by the end of 2022 from 1.6 EH/s at the end of last year, subject to machine deliveries.
“During the first quarter, our team has focused on working towards the completion of Helios Phase 1, while continuing to deliver strong performance from our existing fleet,” said chief executive Peter Wall.
He added: “To be a successful miner you need three components - power, miners, and capital. We already have a strong foundation for growth at Helios with our access to 800 MW of power capacity.”
On capital, he hailed the non-dilutive financing relationship with New York Digital Investment Group (NYDIG) and said access to miners was strengthened through a supply agreement with Intel for new Blockscale ASIC chips.
“This will allow us to build custom-designed mining machines specifically to Argo's specifications and built for use in immersion-cooling technology.”
The quarter ended with Argo owning 2,700 BTC, which combined with a cash balance of US$11.9mln meant, it said, the company has “ample liquidity”.