Company: ARBK
Filing Date: 2025-04-22
Form Type: 20-F/A
Source: 0001104659-25-037403
Chunk: 12

Company: Argo Blockchain Plc
Filing Date: 2025-04-22
Form: 20-F/A
Chunk 12
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 by $11,574 to $26,759 for the year ended December 31, 2022 from $15,185 for the year ended December 31, 2021. This increase was primarily driven by higher power costs in Texas due to the opening of the Helios facility during 2022.

Depreciation of mining equipment

Depreciation of mining equipment increased by $6,130 to $20,469 for the year ended December 31, 2022 from $14,339 for the year ended December 31, 2021. This increase was primarily driven by continued investment in the expansion of our mining fleet and the resulting depreciation of those capital investments.

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Operating expenses

Operating expenses increased by $22,314 to $34,057 for the year ended December 31, 2022 from $11,743 for the year ended December 31, 2021. This increase was primarily driven by increased salary costs and other non-mining operating expenses such as insurance and depreciation and amortization as the Group energized its Helios facility. Operating expenses such as legal and directors and officers insurance also increased as a result of operating as a public company listed in the U.S.

Share based payment

Share based payment increased to $6,096 for the year ended December 31, 2022 from $2,579 for the year ended December 31, 2021. This increase was driven by the increase in options granted during the year, the increase in share price, and the material nature of the charge calculated thereon.

Interest expense

Interest expense increased by $19,726 to $22,661 for the year ended December 31, 2022 from $2,935 for the year ended December 31, 2021. This increase was primarily driven by the lease costs related to the S19 and S19 Pro machine purchase where payment began in January 2021, interest on the Galaxy Term Loan, bond interest, and interest resulting from prepaying loans during the year.

B.Liquidity and Capital Resources

Since our inception, we have financed our operations primarily through cash generated by sales of cryptocurrency, sales of equity securities, issuing bonds and incurring debt. In 2022, the rapid decline in Bitcoin price adversely affected our revenue, financial condition and operating results, and required us to divest a substantial portion of our Bitcoin as well as our Helios mining facility in Texas in order to meet operating expenses and avoid default under