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ARBK Argo Blockchain

Filed: 7 Oct 21, 6:35am
 
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
_____________________
 
FORM 6-K
 
_____________________
 
REPORT OF FOREIGN PRIVATE ISSUER
 
PURSUANT TO RULE 13a-16 OR 15d-16
 
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of October, 2021
 
Commission File Number: 333-258926
 
_____________________
 
Argo Blockchain plc
 
(Translation of registrant’s name into English)
 
_____________________
 
9th Floor
 
16 Great Queen Street
 
London WC2B 5DG
 
England
 
(Address of principal executive office)
 
_____________________
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F Form 40-F
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
 
 
 
EXHIBIT INDEX
 
Exhibit No.
1

Description
September Operational Update dated 7 October 2021

 
 
 
Press Release
 
 
07 October 2021
 
 
 
 
 
Argo Blockchain PLC
 
("Argo" or the "Company")
 

September Operational Update
 
 
Operational Update
 
 
Argo Blockchain plc, a global leader in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK), is pleased to provide the following operational update for September.
 
During the month of September, Argo mined 165 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 206 BTC in August. This brings the total amount of BTC mined year-to-date to 1479 BTC.
 
Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in September amounted to £5.50 million ($7.59 million*) (August 2021: £6.83 million ($9.43 million*)). Argo generated this income at a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 84% for the month of September (August 2021: 86%). The Company has maintained consistent Bitcoin and Bitcoin Equivalent Mining Margins despite increases in network difficulty since July 2021.
 
At the end of September, the Company owned 1836 Bitcoin or BTC equivalent.
 
 
 
Non-IFRS Measures
 
Bitcoin and Bitcoin Equivalent Mining Margin is a financial measure not defined by IFRS. We believe Bitcoin and Bitcoin Equivalent Mining Margin has limitations as an analytical tool. In particular, Bitcoin and Bitcoin Equivalent Mining Margin excludes the depreciation of mining equipment and so does not reflect the full cost of our mining operations, and it also excludes the effects of fluctuations in the value of digital currencies and realized losses on the sale of digital assets, which affect our IFRS gross profit. This measure should not be considered as an alternative to gross margin determined in accordance with IFRS, or other IFRS measures. This measure is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, our gross margin as determined in accordance with IFRS.
 
The following table shows a reconciliation of Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, for the months of August and September 2021.
 
 
 Month Ended 31 August 2021Month Ended 30 September 2021
 £$£$
Gross Profit10,427,5314,396,250108,284149,497
    Gross Margin¹145%145%2%2%
Depreciation of mining equipment846,3821,168,515770,0061,063,070
Charge in fair value of digital currencies(4,736,507)(6,539,222)4,130,9255,703,155
Realised profit on sale of digital currencies(305,366)(421,588)(74,582)(102,968)
Crypto-currency management fees(327,652)(452,356)(298,136)(411,607)
     
Mining Profit5,904,3888,151,5994,636,4976,401,147
    Bitcoin and Bitcoin Equivalent Mining Margin86%86%84%84%
 
(1) Due to favourable changes in fair value of Bitcoin and Bitcoin Equivalents in August and September 2021, gross profit exceeded revenue in both periods.
*Dollar values translated from pound sterling into U.S. dollars at the rate of £1.00 to $1.38, which was the noon buying rate of the Federal Reserve Bank of New York on June 30, 2021.
 
This announcement contains inside information.
  
For further information please contact:
 
Argo Blockchain 
Peter Wall
Chief Executive
via Tancredi +44 203 434 2334
 
finnCap Ltd 
Corporate Finance
Jonny Franklin-Adams
Tim Harper 
Joint Corporate Broker
Sunila de Silva 
+44 207 220 0500
 
 
 
 
Tennyson Securities 
Joint Corporate Broker
Peter Krens
+44 207 186 9030
OTC Markets 
Jonathan Dickson
jonathan@otcmarkets.com
+44 204 526 4581
+44 7731 815 896
Tancredi Intelligent Communication
UK & Europe Media Relations
 
Emma Valgimigli
Emma Hodges
Salamander Davoudi
argoblock@tancredigroup.com
+44 7727 180 873
+44 7861 995 628
+44 7957 549 906
 
 
About Argo:
 
 
Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB and on the Nasdaq Global Select Market in the United States under the ticker: ARBK.
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date: 7 October, 2021
ARGO BLOCKCHAIN PLC
By:
 
Name: Peter Wall
Title: Chief Executive Officer
 
Name: Davis Zaffe
Title: General Counsel