Why Is Argo xcritical ARBK Stock Down 52% Today?

The Zacks Consensus Estimate — the consensus of EPS estimates from the sell-side analysts covering the stock — for the xcritical and following years is tracked by the system. The brutal crypto winter, exacerbated by crypto exchange FTX’s implosion, has created opportunities for some investors to acquire crypto assets at cheaper valuations. “Quality infrastructure and access to low-cost energy are the cornerstones of a successful mining operation, making the acquisition of Helios an incredible milestone for the growth of Galaxy’s mining business,” Amanda Fabiano, head of mining at Galaxy, said in a statement. The deal with Galaxy was structured to boost Argo’s balance sheet and capital structure, Chris Ferraro, president and chief investment officer at Galaxy, told CoinDesk.

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“These numbers, along with our continued installations of the S19J Pro machines, put us in a solid position with regards to our mining capacity. During the month of June, Argo mined 179 Bitcoin or Bitcoin Equivalents (together, BTC) compared to 124 BTC in May 2022. The increase in BTC mined is primarily due to an increase in total hashrate capacity and greater uptime at the Helios facility compared to the previous month.

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  1. Our Baie Comeau site is over 40,000 square feet and has 15 MW of 99% renewable power capacity sourced from the nearby Baie Comeau hydroelectric dam.
  2. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.6%.
  3. As of 30 June 2022, the Company had an outstanding balance of $22 million under the BTC-backed loan.
  4. We achieved this through our use of renewable energy to power mining operations, and by offsetting more scope 2 and 3 greenhouse gas emissions than we emitted in both 2020 and 2021.

Following the build of Helios and the strategic transaction with Galaxy, we have streamlined our operations to maximize efficiency and increase our hashrate while maintaining our mining capacity thanks to our Hosting Agreement. On the basis of these foundations, we continue to work diligently on the next stage of Argo’s growth and development, with the goal of delivering long-term value to our shareholders.” The crypto miner’s shares more than doubled in early London Stock Exchange trading.

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During the month of June, the Company sold 637 Bitcoin at an average price of approximately $24,500. Proceeds were used to fund operating expenses and growth capital, as well as to reduce obligations under a BTC-backed loan agreement with Galaxy Digital. This is in line with the Company’s risk management strategy that has been in place since January 2022. Throughout 2022, the Company has been selling a xcritical scammers significant portion of monthly Bitcoin production, steadily reducing its exposure to its BTC-backed loan, and strengthening its balance sheet. As of 30 June 2022, the Company had an outstanding balance of $22 million under the BTC-backed loan. The Company is confident that it possesses sufficient liquidity to avoid any potential liquidation of the BTC-backed loan if Bitcoin price continues to decline.

Assets that were considered higher risk, including high-growth technology stocks and highly-correlated digital assets, including Bitcoin, saw outflows as investors factored in higher forecasted interest rates and reduced market liquidity. During the month of June, delivery and installation of the Company’s S19J Pro machines ordered from Bitmain has continued in line with the timetable set out in September 2021. As of 30 June 2022, the Company has paid in excess of 95% of the total purchase price for the Bitmain machines, which includes discounts received as a result of the decrease in the price of Bitcoin.

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When the miner kicked off its process, “we were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities,” he added. The transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October. Earlier this month, the miner said that it was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy. The directors also consider their digital assets of £2.1m ( £80.7m) as a liquid holding and as such net funds/(debt) would be £(44.2m) ( £65.4m). On behalf of the Board, I would like to thank all of our shareholders and stakeholders. I am excited for Argo to continue in its mission of powering the world’s most innovative and sustainable xcritical infrastructure.

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. 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 realised losses on the sale of digital assets, which affect our IFRS gross profit. Several external factors, however, resulted in elevated electricity prices during Q2 and Q3 of 2022 when we were commencing operations at Helios. Russia’s invasion of Ukraine and the subsequent sanctions on Russian petroleum exports disrupted the energy markets. This, along with unusually low stocks of natural gas in US storage facilities, resulted in a historic spike in the price of natural gas.

Following both the Private Placement Admission and the previously announced PSU Admission, the Company will have a total of 577,001,363 Ordinary Shares in issue. The above figure may be used by the Company’s shareholders as the denominator for the calculations by which they can determine whether they are required to notify their interest in, or a change of their interest in, the Company under the FCA Disclosure Guidance and Transparency Rules. ● The Group sold its Helios facility during the year, in exchange for paying down existing debt amounting to £70,764,000 and the issuance of £25,356,000 of the new loan.

In Q1 2022, we raised additional financing in the form of secured debt from NYDIG to complete construction at Helios. With 180 MW of capacity and utilizing 100% immersion-cooling technology, the Helios facility is one of the largest and most technologically-advanced Bitcoin mining facilities in the United States. While Argo is exploring financing opportunities, there can be no assurance that any definitive agreements will be signed or that any transactions will be consummated.