Argo Blockchain Q1 gross profit plunges on lower bitcoin prices; shares dip (NASDAQ:ARBK) – Seeking Alpha

Cryptocurrency mining rigs in a data center

luza studios/E+ via Getty Images

luza studios/E+ via Getty Images
U.K.-based Argo Blockchain (NASDAQ:ARBK) stock is falling nearly 6% in Wednesday afternoon trading, as its Q1 revenue growth was offset by a decline in the price of bitcoin (BTC-USD).
Specifically, revenue of $19.52M in Q1 increased from $17.84M in the year-ago period, primarily due to the crypto miner’s hash rate growth throughout 2021.
Q1 gross profit was $1.92M vs. $27.13M in Q1 2021.
Operating profit of $1.8M in the first quarter also tumbled from $25.59M in Q1 a year ago.
Mining profit of $14.92M in Q1 rose slightly from $14.84M in Q1 of last year.
Digital assets held on its balance sheet was $104.84M as of March 31, compared with $106M as of Dec. 2021.
Adjusted EBITDA of $19.1M in Q1 vs. $15.34M in Q1 2021.
Furthermore, “we improved our access to capital by establishing a financing relationship with NYDIG and strengthened our access to miners through our supply agreement with Intel for their new Blockscale ASIC chips,” said Chief Executive Peter Wall. “This will allow us to build custom-designed mining machines specifically to Argo’s specifications and built for use in immersion-cooling technology,” he added.
Also, ARBK shares are facing selling pressure intraday as bitcoin (BTC-USD -3.4%) slides back below its key $30K level, recently changing hands at $29.01K.
Take a look at Argo Blockchain’s Q1 earnings call presentation.