Argo Blockchain PLC on Tuesday said it reduced its debt during the first half year as its interim loss narrowed, but that various cryptocurrency headwinds caused revenue to fall.

The London-headquartered cryptocurrency mining company reported a $18.6 million pretax loss for the first six months of 2023, compared with its $47.9 million loss the previous year. Argo also reduced its debt to $75 million at June 30, from $143 million at the same time in 2022.

Revenue however fell 31% to $24.0 million from $34.6 million. Argo said this was mainly due to the falling price of Bitcoin, alongside an increased global hash rate and associated network difficulty.

Adjusted earnings before interest, tax, depreciation and amortisation fell to $2.3 million from $17.8 million. This included $1.0 million for the second quarter of 2023, which Argo said was driven by non-mining operating costs and expenses falling by 21% compared to the first quarter.

Overall operating costs and expenses decreased 33% in the half year to $7.9 million from $11.7 million the year before, while direct costs increased 48% to $15.1 million from $10.2 million. Argo also incurred $1.4 million in restructuring costs, up from zero in 2022.

Going forward, Argo said it is in advanced discussions regarding potential sales of certain non-core assets, and is evaluating strategies that could further reduce its debt. It also expects to sustain the aforementioned non-mining operating expense savings.

‘For the remainder of 2023, the company will continue to focus on strengthening the balance sheet and growing the business with a strong emphasis on financial discipline and operational excellence,’ commented Chair Matthew Shaw. ‘I am excited for Argo to continue in its mission of powering the world’s most innovative and sustainable blockchain infrastructure in this next stage of the company’s development.’

Argos Blockchain shares were down 2.2% at 8.68 pence in London on Tuesday morning.

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