Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 42

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 42
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 to address the assessed risks of material misstatement.

We did not rely on the work of any component auditors.

#### Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section we have determined the matters described below to be the key audit matters to be communicated in our report.

| Key Audit Matter                                                  | How our scope addressed this matter                               |
| Carrying value of mining machines (Note 18)                       
 The group holds a significant volume and value of mining machines 
 at the year end, comprising of hosted machines at Baie Comeau,    
 Canada and unhosted machines following exit from the Helios       
 facility in Texas, US.                                            
 The key assumptions underlying the value in use calculations,     
 together with fair value less costs to sell, requires significant 
 judgement and estimation by management.                           
 Although the bitcoin price has recovered during the current year, 
 there are numerous factors which indicate a potential impairment  
 under IAS 36. These factors include, but are not limited          
 to:                                                               
 ● Bitcoin halving event during 2024.                              
 ● Movement of machines from a high-performance liquid cooled      
 facility to an air-cooled facility leading to potential mining    
 inefficiencies, the need to refurbish machines and the            
 identification of new hosting facilities.                         
 ● Volatility in the cryptocurrency market giving rise to an       
 adverse change in hash price.                                     
 ● Technological advancements and substantial investment by        
 competitors giving rise to an adverse change in hash              
 price.                                                            
 The impairment assessment has been assessed as a key audit matter 
 in the current year.                                              | In                                                                
 responding to the identified key audit matter we completed the    
 following audit procedures:                                       
 ● Reviewing management’s value in use and fair value              
 less costs to sell calculations, challenging the assumptions made 
 thereto including obtaining both corroborative and contradictory  
 evidence;                                                         
 ● Evaluating the allocation of mining machines to the most