Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 8

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 8
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 and general economic conditions and their effect on exchange rates, interest rates, and inflation rates, may impact the ultimate value of the Group regardless of its operating performance. The Group also faces competition from other organisations, some of which may have greater resources.

Tax Risk

A tax authority may disagree with tax positions that the Company has taken, which could result in increased tax liabilities. For example, His Majesty’s Revenue & Customs (“HMRC”), Revenue Quebec, the Canada Revenue Agency, the IRS or another tax authority could challenge the Company’s allocation of income by tax jurisdiction and the amounts paid between the Company’s affiliated companies pursuant to the Company’s intercompany arrangements and transfer pricing policies, including amounts paid with respect to the Company’s intellectual property development. Similarly, a tax authority could assert that the Company is subject to tax in a jurisdiction where the Company believes it has not established a taxable connection and such an assertion, if successful, could increase the Company’s expected tax liability in one or more jurisdictions.

A tax authority may also take the position that material income tax liabilities, interest and penalties are payable by the Company. For example, where there has been a technical violation of contradictory laws and regulations that are relatively new and have not been subject to extensive review or interpretation, in which case the Company expects that we might contest such assessment.

Contesting such an assessment may be lengthy and costly and if the Company is unsuccessful in disputing the assessment, the implications could increase the Company’s anticipated effective tax. Income tax assessments received in Canada are currently under appeal, and if unsuccessful, the Company will incur significant liabilities.

Cyber risk

The Group holds digital assets via software and hardware which may prove to be vulnerable to data security breaches in the future. Data security breach incidents may compromise the confidentiality, integrity or availability of data such that the data is vulnerable to access or acquisition by unauthorised persons. These data security breaches may result in the unrecoverable loss of digital assets. The Group’s hardware devices and remote servers holding the Group’s data may be breached and result in the loss of valuable data. Loss of the private keys required to access the digital assets may result in irrecoverable loss of access to the digital assets, which may not be covered by insurance (whether in full or part). In order to mitigate these risks, the Group holds its assets with third party specialist crypto-currency custodians with a number of security measures in place.

Cryptocurrency price volatility

Revenues are denominated in cryptocurrency or tokens. These ‘digital assets’ can be subject to high