Company: ARBK
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001104659-25-049311
Chunk: 101

Company: Argo Blockchain Plc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 101
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(1)   Source – Closing price of Bitcoin as reported on CoinGecko.com
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(2)   Calculated by taking the yearly average of the daily closing price of Bitcoin as reported on CoinGecko.com
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(3)   Includes all miners contained at our self-mined sites of Baie Comeau and Mirabel and miners that are hosted at the Helios site.
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Components of Our Results of Operations
Total revenue
Our revenues primarily consist of cryptocurrency that we mine. In 2022, 2023 and 2024, we principally focused on mining Bitcoin. We participate in mining pools, with the pool’s performance obligation being the delivery of cryptocurrency into our wallet once an algorithm has been solved by the pool. Our mining revenue consists of our share of the block reward the pool earns for solving the block, and our share of transaction fees associated with the transactions comprising the block. Our share of the block reward and related transaction fees is determined by the proportion of hash power we contribute toward the pool as a whole. The block reward is pre-determined and hard coded into the protocol governing the relevant blockchain, while the transaction fees are the aggregate fees paid by parties whose transactions are included in the block.
Power and hosting costs
Direct costs of mining revenue are comprised of power costs and the fees we pay to third parties to host, operate and maintain our mining machines. 
Power credits
The hosting agreement with Galaxy allowed Argo to share in the proceeds from economic curtailment, which occurs when Helios monetizes its fixed-price PPA during periods of high-power prices.
Depreciation of mining equipment
We capitalize the cost of our mining machines and record depreciation expense on a straight-line basis over the estimated useful life of the machines, which is generally 36 to 48 months.
Operating expenses
General and administrative expenses represent salary and other employee costs, restructuring costs, insurance fees, non-mining depreciation and amortization, legal and professional fees, regulatory fees, consulting fees, foreign exchange gains and losses, and other expenses. 
Income tax expense
We are liable to pay tax in several jurisdictions, including the United Kingdom, Canada and the United States. Our effective tax rate represents the weighted average of the tax rates for which we are liable in those jurisdictions. We did not occur any income tax expense in any of the jurisdictions that we operate.

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Results of Operations 
The following table sets forth our results of operations for the years ended December 31, 2024