Revenue volatility remains a primary concern, with quarterly top-line figures contracting from $25.0M in 2022Q4 to $10.3M in 2024Q4, while operating margins remain persistently negative at -14.3%.
| Sales/Revenue | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 15.63M | 21.3M | 2.76M | 69.8M | 2.35M | 3.87M | -81.86K |
| Gross Margin % | 33.24% | 42.13% | 4.81% | 70.69% | 9.07% | 33.88% | -8.41% |
| Gross Profit Growth % | -26.64% | 672.53% | -96.05% | 2869.26% | -39.22% | 4824.75% | - |
| Operating Expenses | 30.95M | 40.7M | 9.76M | 12.63M | 2.63M | 3.69M | 4.17M |
| OpEx % of Revenue | 65.83% | 80.5% | 17.04% | 12.79% | 10.13% | 32.29% | 428.5% |
| Selling, General & Admin | 16.3M | 21.79M | 9.76M | 12.63M | 2.7M | 3.55M | 3.11M |
| SG&A % of Revenue | 34.66% | 43.1% | 17.04% | 12.79% | 10.43% | 31.08% | 319.42% |
| Research & Development | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - |
| Operating Income | -15.32M | -19.4M | -26.7M | 57.17M | -274.33K | 181.85K | -4.25M |
| Operating Margin % | -32.59% | -38.37% | -46.61% | 57.89% | -1.06% | 1.59% | -436.9% |
| Operating Income Growth % | 21% | 27.35% | -146.71% | 20939.26% | -250.86% | 104.27% | - |
| EBITDA | -416K | 6.48M | 2.04M | 72.49M | 7.81M | 3.12M | -3.63M |
| EBITDA Margin % | -0.88% | 12.81% | 3.55% | 73.41% | 30.15% | 27.37% | -373.12% |
| EBITDA Growth % | -106.42% | 218.33% | -97.19% | 827.75% | 150.07% | 186% | - |
| D&A (Non-Cash Add-back) | 14.91M | 25.88M | 28.74M | 15.32M | 8.09M | 2.94M | 621.13K |
| EBIT | -14.84M | -19.4M | -26.7M | 55.15M | 2.56M | -929.55K | -3.71M |
| Net Interest Income | -6.81M | -11.56M | -300K | 1.11K | -213.4K | -46.68K | 0 |
| Interest Income | 0 | 0 | 22.15M | 2.9M | 1.9K | 7.44K | 30.63K |
| Interest Expense | 6.81M | 11.87M | 22.45M | 2.9M | 215.29K | 54.12K | 0 |
| Other Income/Expense | - | - | - | - | - | - | - |
| Pretax Income | -54.76M | -35.03M | -240.69M | 54.71M | 1.97M | -1.15M | -5.24M |
| Pretax Margin % | -116.47% | -69.29% | -420.2% | 55.4% | 7.61% | -10.08% | -538.52% |
| Income Tax | 340K | 0 | -11.47M | 11.32M | 0 | 0 | 351.07K |
| Effective Tax Rate % | -0.62% | 0% | 4.77% | 20.69% | 0% | 0% | -6.69% |
| Net Income | -55.1M | -35.03M | -223.87M | 41.59M | 1.97M | -1.15M | -5.24M |
| Net Margin % | -117.2% | -69.29% | -390.83% | 42.12% | 7.61% | -10.09% | -538.52% |
| Net Income Growth % | -57.29% | 84.35% | -638.3% | 2009.24% | 271.26% | 78.04% | - |
| Net Income (Continuing) | -55.1M | -35.03M | -228.96M | 39.07M | 1.97M | -1.15M | -4.85M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.09 | -0.07 | -0.48 | 0.10 | 0.01 | -0.00 | -0.03 |
| EPS Growth % | -30.36% | 85.52% | -580% | - | - | 86.17% | - |
| EPS (Basic) | -0.09 | -0.07 | -0.48 | 0.10 | 0.01 | -0.00 | -0.03 |
| Diluted Shares Outstanding | 607.88M | 503.92M | 473.93M | 415.2M | 334.64M | 293.75M | 186.02M |
| Basic Shares Outstanding | 607.88M | 503.92M | 473.93M | 397.51M | 303.44M | 293.75M | 186.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Operational viability post-halving
As indicated by the quarterly income statement data, ARBKL's revenue has fluctuated significantly, dropping from $25.0M in 2022Q4 to $10.3M in 2024Q4, reflecting the inherent sensitivity of mining operations to network difficulty and the underlying market price of Bitcoin rather than consistent organic growth.
The revenue trajectory appears highly erratic, suggesting that the company lacks the scale or operational stability to maintain a predictable top-line growth path. Investors should monitor whether the current revenue levels can support the company's fixed cost base, as the lack of consistent growth suggests a reliance on external market conditions that remain outside of management's control.
According to the provided financial figures, ARBKL's gross margin has oscillated between negative territory and a peak of 41.0% in 2024Q2, highlighting the extreme volatility and lack of structural pricing power inherent in its current asset-light, hosting-dependent business model.
The inconsistency in gross margins suggests that the company struggles to maintain profitability when network difficulty increases or Bitcoin prices soften. This volatility implies that the company may be unable to effectively hedge its power costs or optimize its fleet efficiency, leaving it vulnerable to margin erosion during industry-wide downturns.
Based on reported income statements, ARBKL consistently records negative operating margins, reaching -14.3% in 2024Q4, which demonstrates that corporate overhead and operational expenses continue to outpace the gross profit generated by the mining fleet, indicating a lack of meaningful operating leverage.
The persistent inability to achieve positive operating income suggests that the company's cost structure is misaligned with its current revenue-generating capacity. This structural imbalance warrants further investigation into whether management can achieve the necessary scale to cover fixed costs or if the business model remains fundamentally unscalable in its current form.
Financial statements reveal a net margin of -154.6% in 2024Q4, a figure that underscores the significant impact of non-operating items and potential impairment charges on the bottom line, which complicates the assessment of the company's true underlying earnings quality.
The wide disparity between gross profit and net income suggests that non-operating headwinds, such as debt servicing or asset impairments, are severely diluting shareholder value. Investors should be cautious, as the recurring net losses indicate that the company is not currently generating sustainable earnings, regardless of its operational performance.
As noted in the company's recent filings, the transition to an asset-light hosting model has reduced capital intensity but left the firm with limited control over power costs, raising concerns about its long-term competitive position against vertically integrated peers with lower cost structures.
Short-sellers may focus on the company's inability to achieve self-sustaining cash flow, which necessitates frequent reliance on external financing. The risk of further equity dilution appears high, as the current financial profile suggests that the company may struggle to fund the next generation of hardware upgrades required to remain competitive.
Quick answers to the most common questions about buying ARBKL stock.
Argo Blockchain plc 8.75% Senior Notes due 2026 (ARBKL) reported a net loss of $55.1M for the fiscal year ending 2024.
Argo Blockchain plc 8.75% Senior Notes due 2026 (ARBKL) reported an operating income of $-15.3M, resulting in an operating profit margin of -32.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Argo Blockchain plc 8.75% Senior Notes due 2026 (ARBKL) generated $15.6M in gross profit for the year, representing a gross profit margin of 33.2%. This demonstrates the company's core pricing power and production efficiency.