Company: ARBK
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001104659-25-049311
Chunk: 33

Company: Argo Blockchain Plc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 33
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 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.

Table of Contents

Results of Operations

The following table sets forth our results of operations for the years ended December 31, 2024, 2023 and 2022:

                                                        2024          2023           2022  
 ───────────────────────────────────────────────────────────────────────────────────────────
  (in $’000’s)                                                                             
  Revenues                                            47,017        50,558         58,583  
  Power and hosting costs                           (32,887)      (35,964)       (26,759)  
  Power credits                                        1,498         7,163              —  
  Depreciation of mining equipment                  (14,171)      (18,656)       (20,469)  
  Gross profit                                         1,457         3,101         11,355  
  Operating expenses                                (12,536)      (18,949)       (34,057)  
  Gain on hedging                                      (487)             —          2,097  
  Share based payments charge                        (3,759)       (3,892)        (6,096)  
  Operating loss                                    (15,325)      (19,740)       (26,701)  
  Gain/(loss) on sale of investments                   (842)            36              —  
  Loss on sale of subsidiary                               —             —       (55,418)  
  Write off of investment