Business Context and Reporting Period
Company: Argo Blockchain Plc
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Argo Blockchain is a cryptocurrency mining company focused on Bitcoin. The company operates a fleet of approximately 22,600 mining machines across owned facilities in Quebec, Canada, and leased/hosted facilities in the United States (Alabama, Tennessee, Washington).
Accounting Basis: International Financial Reporting Standards (IFRS).
Key Event: The company completed a court-sanctioned restructuring plan in December 2025, which recapitalized the balance sheet, cancelled outstanding senior notes, and resulted in Growler Mining Tuscaloosa, LLC becoming the controlling shareholder (approx. 88.6% ownership).
Key Financial Metrics
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total Revenue | $15.5 million | $47.0 million | $50.6 million |
| Net Income (Loss) | $5.1 million | ($55.1 million) | ($34.6 million) |
| Adjusted EBITDA | ($3.6 million) | $5.7 million | $7.7 million |
| Bitcoin Mined | 150 BTC | 755 BTC | 1,760 BTC |
| Cash and Cash Equivalents | $2.2 million | $8.6 million | $7.4 million |
| Total Debt (Outstanding) | $1.6 million | $40.2 million | $52.5 million |
| Operating Cash Flow | ($25.0 million) | ($44.8 million) | ($48.0 million) |
Note: The 2025 Net Income includes a non-cash gain of $22.4 million from the extinguishment of debt during the restructuring. Operating cash flow remains negative due to working capital changes and the nature of mining operations.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 67% to $15.5 million from $47.0 million in 2024. This was primarily driven by the Bitcoin halving event in April 2024 (reducing block rewards to 3.125 BTC) and a reduction in the operational mining fleet.
- Profitability Shift: The company reported a net profit of $5.1 million in 2025 compared to a net loss of $55.1 million in 2024. The profit is largely attributable to the $22.4 million gain on debt extinguishment rather than core operating performance.
- Debt Reduction: Total debt was significantly reduced from $40.2 million in 2024 to $1.6 million in 2025. The 8.75% Senior Notes due 2026 were fully cancelled and converted to equity. Remaining debt consists of a mortgage facility and short-term loans.
- Cost Structure: Power and hosting costs decreased to $12.6 million from $32.9 million, reflecting fleet optimization and the sale of mining machines. Depreciation of mining equipment dropped to $2.6 million from $14.2 million due to asset sales and impairments.
- Ownership Structure: Following the restructuring, Growler Mining Tuscaloosa, LLC became the controlling shareholder, owning approximately 88.6% of outstanding ordinary shares.
Guidance, Outlook, and Risks
Management Commentary & Outlook: Management believes the company has sufficient liquidity to continue as a going concern for at least 12 months, supported by the restructuring and a $5.0 million subscription facility with Growler (of which $2.5 million has been drawn). The company expects to be debt-free by the end of 2026 following the repayment of its remaining mortgage facility. The strategy focuses on financial discipline, operational excellence, and utilizing low-cost renewable energy.
Key Risks and Contingencies:
- Bitcoin Volatility & Halving: Revenue is highly sensitive to Bitcoin prices and network difficulty. The April 2024 halving significantly reduced mining rewards, pressuring margins.
- Regulatory & Tax Uncertainty: The company faces ongoing tax disputes in Canada (Revenue Quebec and CRA) regarding income tax and GST/HST assessments totaling over $26 million in liabilities and interest. Management is contesting these assessments and has not recorded a provision, believing the positions will be upheld.
- Electricity Costs: Operations in Quebec face potential rate increases proposed by Hydro-Québec for large data centers, which could impact the economic viability of mining in that jurisdiction.
- Going Concern (Historical): While the 2025 restructuring removed material uncertainty, the company had substantial doubt about its ability to continue as a going concern for the 2024 period.
Investor Verification Checklist
- Debt Extinguishment Gain: Verify the $22.4 million gain on debt extinguishment is non-recurring and does not reflect sustainable operating profitability.
- Canadian Tax Disputes: Review the status of the $26+ million tax assessments from Canadian authorities and the likelihood of resolution or potential liability recognition.
- Subscription Facility Terms: Confirm the terms of the $5.0 million facility with Growler, including interest rates, maturity, and any covenants.
- Quebec Power Rates: Monitor regulatory developments regarding Hydro-Québec's proposed rate changes for cryptocurrency mining operations.
- Asset Valuation: Assess the fair value of the remaining mining fleet and the impact of the Bitcoin halving on future cash flow projections.