Argo Blockchain PLC Q4 FY2023 Earnings Call
· Earnings call transcript and AI-powered summary
Key Highlights
- Bitcoin Production: 1,760 BTC mined in 2023, an 18% decrease from 2022 due to a 71% YoY increase in network difficulty.
- Revenue: $50.6 million in 2023, down 14% from $59 million in 2022, mainly due to lower BTC production.
- Mining Margin: 43% for 2023, down from 54% in 2022, attributed to increased network competition.
- Cost Management: Direct cost per BTC mined in 2023 was $16,363. All-in average power and hosting costs were just under $0.05/kWh.
- Adjusted EBITDA: Positive $8.3 million for 2023, compared to a loss of $47 million in 2022.
- Debt Reduction: $24 million debt paid down during 2023 and Q1 2024, bringing total debt to $54 million at end of Q1 2024.
- Cash Position: $12 million cash on hand at March 31, 2024, up from $7.4 million at 2023 year-end.
- Q4 2023 Performance:
- 443 BTC mined, a 20% increase over Q3 2023 due to reduced economic curtailment in Texas.
- Q4 adjusted EBITDA was $3.6 million, continuing sequential quarterly growth.
- Bitcoin price realized: $36,500 (up 30% from $28,100 in Q3).
- Non-mining OpEx down 12% QoQ to $3.1 million.
- Economic curtailment revenue: $7.2 million for 2023.
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