Company: ARBK
Filing Date: 2025-04-22
Form Type: 20-F/A
Source: 0001104659-25-037403
Chunk: 52

Company: Argo Blockchain Plc
Filing Date: 2025-04-22
Form: 20-F/A
Chunk 52
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 assesses whether there is an indication that an asset may be impaired. If an indication exists, the Group estimates an asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset or CGU’s fair value, less costs of disposal and its value in use. When the carrying value of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.In assessing the fair value of Mining and Computer Equipment, the Group used readily available tera hash pricing ("hashprice") less a15% discount for used equipment. In assessing value in use, the discounted estimated future cash flows over the useful life of the mining machines using a pre-tax discount rate of14.09%. As a result of the analysis, an impairment charge of $0.9million (2022-$55.8million) was recorded. A5% change in the hashprice has a $1.5million impact on the impairment. A1% change in the discount rate has a $0.4million impact on the impairment.Impairment of ChipsIn assessing the fair value of machine components, the Group used readily available chip set prices and management’s estimate of other components in the chip sets to determine the value of chips on hand. As a result of this analysis, an impairment of $(0.1million) was recorded (2022-$18million).Loss on SaleDuring 2022, the Group sold chips for proceeds of $12,404and recorded a loss on disposal of $23,228.Mining Machine SwapIn March 2022, the Group entered into an agreement to exchange mining machines and terminate a hosting agreement. With the completion of Helios, the Group no longer required third party hosting services. The agreement provided the hosting provider with ownership of the Group's machines at their facilities in exchange for new mining machines for our Helios facility. The hash rate between the two groups of mining machines was similar.This transaction lacks commercial substance, therefore, IFRS 16 requires the mining machines acquired to be recorded at the book value of the mining machines transferred to the hosting service provider.​20.TRADE AND OTHER RECEIVABLES​​​​​​​GroupGroup​​20232022​​$’000​$’000Trade and other receivables1,131—Prepaids​1,355​—Mining equipment prepayments​—​5,978Other taxation and social security1,349824Total trade and other receivables3,8356