Company: ARBK
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001104659-25-049311
Chunk: 100

Company: Argo Blockchain Plc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 100
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 charged as well as any related service fees. We believe this measure is a useful complement to Mining Profit, as it reflects the average marginal direct cost of each reward earned irrespective of the value of such reward at the time it is earned. Average Direct Cost per Bitcoin Mined excludes the depreciation of mining equipment and so does not reflect the full cost of our mining operations. In addition, Average Direct Cost per Bitcoin Mined or similar non-IFRS measures are utilized by analysts in the cryptocurrency mining industry to compare results across peer companies, and accordingly we believe that excluding the depreciation of mining equipment from Average Direct Cost per Bitcoin Mined is appropriate to facilitate accurate comparisons to the financial performance of other industry participants. Average Direct Cost per Bitcoin Mined is a supplemental measure of our performance that is not required by, or presented in accordance with, IFRS. This measure should not be considered as an alternative to IFRS measures. The table below reconciles Average Direct Cost Per Bitcoin Mined to Average Total Cost Per Bitcoin Mined, the most directly comparable IFRS measure:

                    ​                       ​       ​        ​        ​        ​        ​    
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​                                           ​                          YEAR ENDED DECEMBER 31
​                                           2024            2023              2022           
Bitcoin Mined (number of Bitcoin)           755                       1,760             2,156
Total Cost of Bitcoin Mined ($000s)                45,560            47,457            47,228
Average Total Cost Per Bitcoin Mined ($)           60,372            26,964            21,905
Depreciation of mining equipment ($000s)         (14,171)          (18,656)          (20,469)
Direct Cost of Bitcoin Mined ($000s)               31,389            28,801            26,759
Average Direct Cost Per Bitcoin Mined ($)          41,594            16,364            12,411
​
We define EBITDA as our operating income plus depreciation and amortization. As a capital-intensive business, EBITDA removes the cost of depreciation of mining equipment. This metric allows us to monitor the profitability of our underlying business on a current basis, and we believe it provides a useful metric for comparing our performance to those of similar companies.

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Adjusted EBITDA
Adjusted EBITDA provides this same indicator of Argo’s EBITDA from operations but additionally excludes any unrealized foreign exchange