Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 50

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 50
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 significant doubt regarding the Group’s and Company’s ability to continue as a going concern and meet its liabilities as they come due. The significant uncertainties are:

1)

The Group has $40 million in unsecured bonds maturing in November 2026 that carry an interest rate of 8.75%, payable quarterly ($875,000 per quarter).

2)

The Group’s exposure to Bitcoin prices, power prices, and hashprice, each of which have shown volatility over recent years, may have a significant impact on the Group’s future profitability. The Group may have difficulty meeting its liabilities if there are significant declines to the hashprice assumption or significant increases to the power price, particularly where there is a combination of both factors.. The Directors’ assessment of going concern includes forecasted scenarios drawn up to 30 June 2026 using the Group’s estimate of potential hashprices and power costs.

3)

As noted above, the refurbishment costs and loss of mining margin during the re-hosting phase in the first quarter impacted the Group’s cash balance. In addition, the sale of machines subsequent to year end has reduced the Group’s hashrate, lowering the amount of Bitcoin it will produce going forward. Depending on hashprice, the Group may not generate operating profit and/or positive cash flow despite reducing operating expenses during the first half of 2025.

Offsetting these negative impacts to the Group’s cash flow are:

1)

The Group’s cash balance of $2.4 million at 31 March 2025.

2)

The Group’s ability to dispose of assets, including unhosted mining machines and the Group’s data center in Baie Comeau, Quebec. Assets were successfully sold during 2024 to repay debt.

3)

The Group’s ability to equitize the unsecured bonds (through a tender or structured process).

4)

The Group’s ability to generate additional funds by issuing equity for cash proceeds, as it did successfully in 2023 and 2024.

Based on information from Management, as well as independent advisors, the Directors have considered the period to 30 June 2026, as a reasonable time period given the variable outlook of cryptocurrencies, cryptocurrency mining costs, competition and energy prices. Based on the above considerations, the Board believes it is appropriate to adopt the going concern basis in the preparation of the Financial Statements; however, the Board notes that the debt service requirements, lower operating margins, and the volatile economic and industry environment, indicate the existence of material uncertainties that cast significant doubt regarding the applicability of the going concern