Argo Blockchain PLC on Thursday said the company strengthened its financial position last year, thanks to cost cutting and a rally in the price of bitcoin.
The London-based cryptocurrency miner narrowed its pretax loss to $35.0 million in 2023 from $240.7 million in 2022, even as revenue decreased by 14% to £50.6 million from $58.6.
The improved performance was partly the result of an effort to reduce expenses. Non-mining operating expenses were cut by 48% to $18.8 million from $34.1 million, and Argo reduced its interest expenses to $11.6 million from $22.7 million.
Weighing against 2022 also had been a substantial impairment charge of $55.8 million, as well as a $55.4 million loss on sale of a subsidiary
Being loss-making Argo pays no dividend to shareholders.
In 2023, the company benefited from a strengthening in the price of bitcoin after the previous year’s slump. The cryptocurrency has more than doubled in price over the past 12 months.
Chief Executive Officer Thomas Chippas said: ‘We have worked hard to strengthen our balance sheet and reduce Argo’s debt burden. We have reduced the debt owed to Galaxy Power LLC by $22 million, or 63%, and we have also improved our cash position over the last several quarters.’
Looking ahead, Argo said its priorities for the year include a continued strategic focus on financial discipline.
Argo Blockchain shares were down 4.8% to 11.61 pence each in London on Thursday afternoon.
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