Argo Blockchain shares plunge 19% on weaker Q3 revenue compared to 2023 levels

Argo Blockchain reported a 28% year-on-year decline in third-quarter revenue, reflecting ongoing challenges in the crypto mining space.

Bitcoin (BTC) mining firm Argo Blockchain reported larger losses in the third quarter, with quarterly revenue falling to $7.5 million from $10.4 million a year earlier. In its Q3 earnings report published on November 20, the firm announced total revenue of $36.7 million for the first nine months of 2024; this is a slight increase from $34.4 million in 2023. The firm mined 123 BTC in the quarter, issuing an average of 1.3 BTC per quarter. day.

The firm acknowledged that mining margins also declined, falling to 8% in the third quarter from 58% in the same period last year, largely due to the absence of energy credits that boosted 2023 results. According to the report, the company’s net loss was $6.3 million in this quarter; This was an improvement from the $9.9 million loss in the third quarter of 2023.

Amid the news, Argo Blockchain’s shares tumbled nearly 19% in over-the-counter trading, according to OTC Markets Group data.

Argo reduced its debt by $12.4 million in the quarter, including repaying its loan from Galaxy Digital in full. The company closed the period with $2.5 million in cash and 4 BTC. Argo Blockchain CEO Thomas Chippas noted that while the third quarter was challenging, recent developments in the Bitcoin mining economics and the HPC hosting opportunity at Baie-Comeau demonstrate the firm’s “ability to diversify our capabilities beyond BTC into the growing AI computational market.”