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 March, 2024
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
Eastcastle House
27/28 Eastcastle Street
London W1W 8DH
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
Sale of
Mirabel Quebec Data Center & Feb Op Update dated 05 March
2024
|
Press Release
5 March 2024
Argo Blockchain plc
("Argo" or "the Company")
Sale of Mirabel, Quebec Data Center
for $6.1 Million
February Operational Update
Argo Blockchain plc (LSE: ARB; Nasdaq: ARBK), a global leader in
cryptocurrency mining, is pleased to announce that it has entered
into an agreement for the sale of its data center located in
Mirabel, Quebec (the "Mirabel Facility") for total consideration of
$6.1 million (the "Transaction"). All references to $ are to USD,
being derived from the Canadian dollar amounts at an exchange
rate of 0.74.
The Mirabel Facility has five megawatts of electrical capacity,
implying a $1.2 million per megawatt sales price for the
Transaction. The net proceeds from the Transaction are
expected to first repay the Mirabel Facility's
outstanding mortgage in full, with the remainder expected to be
used to repay debt owed to Galaxy Digital Holdings, Ltd. ("Galaxy")
(TSX: GLXY).
The Transaction is expected to strengthen Argo's balance sheet,
reducing outstanding debt by $5.4 million. The Galaxy
debt balance as of 29 February 2024, with pro forma adjustments for
the Transaction and subsequent debt repayment, is $14.0 million, a
60% reduction from the original Galaxy debt balance of $35.0
million.
Pro Forma Unaudited Debt Balances:
|
$ in millions
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Interest Rate
|
9/30/2023
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12/31/2023
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2/29/2023
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Transaction
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Pro Forma 2/29/2024
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Senior
Notes
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8.75%
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$40.0
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$40.0
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$40.0
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-
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$40.0
|
|
Galaxy
Debt
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SOFR + 11%
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27.2
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23.5
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18.0
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(4.0)
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14.0
|
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Mirabel
Mortgage
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Prime + 0.5%
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1.6
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1.5
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1.4
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(1.4)
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-
|
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Baie
Comeau Mortgage
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Prime + 0.5%
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1.5
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1.4
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1.2
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-
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1.2
|
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Total
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$70.3
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$66.4
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$60.6
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$(5.4)
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$55.2
|
Importantly, the Transaction enables the Company to delever the
balance sheet with minimal impact to the Company's revenue.
Following the Transaction, Argo will maintain ownership of all
mining machines currently located at the Mirabel Facility. The
Company is in the process of relocating the machines to its Baie
Comeau facility and anticipates selling certain prior
generation machines representing approximately 140 PH/s. Going
forward, the Company's total hashrate capacity is expected to
be 2.7 EH/s.
The Transaction has significant operational
benefits for Argo. It allows the Company to streamline its
operations by locating all self-mining machines
at its Baie Comeau facility. Additionally, the
Transaction reduces the Company's non-mining operating expenses by
$0.7 million annually.
The Transaction is expected to close by the end of March 2024 upon
the successful completion of customary closing conditions,
including entry into a definitive share purchase agreement and
certain regulatory approvals.
Management Commentary
Argo's Chief Executive Officer, Thomas Chippas, said, "This
Transaction demonstrates the Company's continued commitment to
strengthening the balance sheet through a focus on aggressive
deleveraging and reducing non-mining operating expenses. We are
able to exit the Mirabel Facility with
a high multiple on its power capacity, and we also realize a
premium on this real estate asset while maintaining a
strong hashrate capacity of 2.7 EH/s."
February Operational Update
During the month of February, the Company mined 92 Bitcoin, or 3.2
Bitcoin per day. This 21% reduction in daily Bitcoin production
compared to the prior month was primarily due to a
maintenance-related outage at the Cottonwood substation which
is owned
and operated by an unaffiliated third party. Total downtime from
the outage was approximately 77 hours, or 11% of the month. The
maintenance was completed on 21 February 2024, and normal
operations have resumed. Additionally, Bitcoin production in
February was negatively impacted by a 5% higher average network
difficulty compared to the prior month.
Mining revenue in February 2024 amounted to $4.5 million, a
decrease of 15% compared to the prior month (January 2024: $5.3
million).
As of 29 February 2024, the Company held digital assets worth the
equivalent of 14 Bitcoin.
Argo CEO Thomas Chippas said, "Despite the decrease in Bitcoin
production due to maintenance on the Cottonwood substation, we
expect that our realized power
prices at Helios for February will be significantly lower than
normal due to favorable power market conditions. Lower
power prices will have a beneficial impact to our mining profit,
mining margin, and operating cash flow for the
month."
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes
forward-looking statements which reflect the Company's current
views, interpretations, beliefs or expectations with respect to the
Company's financial performance, business strategy and plans and
objectives of management for future operations. These statements
include forward-looking statements both with respect to the Company
and the sector and industry in which the Company operates.
Statements which include the words "remains confident", "expects",
"intends", "plans", "believes", "projects", "anticipates", "will",
"targets", "aims", "may", "would", "could", "continue", "estimate",
"future", "opportunity", "potential" or, in each case, their
negatives, and similar statements of a future or forward-looking
nature identify forward-looking statements. All forward-looking
statements address matters that involve risks and uncertainties
because they relate to events that may or may not occur in the
future, including the risk that the Company may receive the
benefits contemplated by its transactions with Galaxy, the Company
may be unable to secure sufficient additional financing to meet its
operating needs, and the Company may not generate sufficient
working capital to fund its operations for the next twelve months
as contemplated. Forward-looking statements are not guarantees of
future performance. Accordingly, there are or will be important
factors that could cause the Company's actual results, prospects
and performance to differ materially from those indicated in these
statements. In addition, even if the Company's actual results,
prospects and performance are consistent with the forward-looking
statements contained in this document, those results may not be
indicative of results in subsequent periods. These forward-looking
statements speak only as of the date of this announcement. Subject
to any obligations under the Prospectus Regulation Rules, the
Market Abuse Regulation, the Listing Rules and the Disclosure and
Transparency Rules and except as required by the FCA,
the London Stock Exchange, the City Code or applicable law and
regulations, the Company undertakes no obligation publicly to
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise. For a more
complete discussion of factors that could cause our actual results
to differ from those described in this announcement, please refer
to the filings that Company makes from time to time with
the United States Securities and Exchange Commission and
the United Kingdom Financial Conduct Authority, including the
section entitled "Risk Factors" in the Company's Annual Report on
Form 20-F.
For further information please contact:
|
Argo
Blockchain
|
|
|
Investor
Relations
|
ir@argoblockchain.com
|
|
Tennyson
Securities
|
|
|
Corporate
Broker
Peter
Krens
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+44
207 186 9030
|
|
Fortified
Securities
|
|
|
Joint
Broker
Guy
Wheatley, CFA
|
+44
74930989014
guy.wheatley@fortifiedsecurities.com
|
|
Tancredi
Intelligent Communication
UK &
Europe Media Relations
|
|
|
Salamander
Davoudi
Helen
Humphrey
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argoblock@tancredigroup.com
|
About
Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK)
blockchain technology company focused on large-scale cryptocurrency
mining. With mining operations in Quebec and Texas, and
offices in the US, Canada, and the UK, Argo's global,
sustainable operations are predominantly powered by renewable
energy. In 2021, Argo became the first climate positive
cryptocurrency mining company, and a signatory to the Crypto
Climate Accord. For more information, visit www.argoblockchain.com.
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:
05 March, 2024
|
ARGO BLOCKCHAIN PLC
By:
/s/ Jim
MacCallum
Name:
Jim MacCallum
Title:
Chief Financial Officer
|
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