Q3 2024 Argo Blockchain PLC Earnings Call

Operator: should be submitted at any time just using the Q&A tab situated on the right-hand corner of your screen. Please simply type in your questions at any time and press send. The company may not be in a position to answer every question it receives during today's call. However, the company can review all questions submitted today, and we'll publish responses on the Investor Meet Company platform. Before we begin, we'd like to submit the following poll, and I'm sure the company will be most grateful for your participation. I'd now like to hand over to Markella, financial communications representative of Argo Blockchain.

Markella: And I'd like to hand over to Markella, Financial Communications Representative of Argo Thank you, Mark. Before we begin, I would like to remind everyone that today's presentation and remarks may contain forward looking statements. Please see your Form 20-F filed with the Securities and Exchange Commission for our full race disclosure.

Over to Mark Heller financial Communications representative of uncle blockchain.

[Financial Communications Representative] (Argo Blockchain): Thank you, Mark. Before we begin, I would like to remind everyone that today's presentation and remarks may contain forward-looking statements. Please see our Form 20-F filed with the Securities and Exchange Commission for our full risk disclosures. With us today for our discussion of Q3 2024 results are Thomas Chippas, Argo's Chief Executive Officer, and Charlotte Proctor-Worrall, Argo's Chief Financial Officer. Now I'll turn it over to Thomas for some introductory remarks.

Speaker Change: Thank you Mike before we begin I would like to remind everyone that today's presentation and remarks may contain forward looking statements. Please see our form 20-F filed with the Securities and Exchange Commission for our fall race disclosures.

Speaker Change: Okay.

Markella: and with us today for our discussion of Q3 2024 results are Thomas Chippas, Argo's Chief Executive Officer and Jim MacCallum, Argo's Chief Financial Officer.

Speaker Change: And with US today for our discussion of Q3 'twenty 'twenty four our results are Thomas cheapest Argo's, Chief Executive Officer, and Jim Mccallum Argo's, Chief Financial Officer, and now I'll turn it over to Thomas for some introductory remarks.

Thomas Chippas: And now I'll turn it over to Thomas for some introductory remarks. Thank you, Markella, and thank you to everyone for joining us today as we talk about our progress so far this quarter and this year. Argo remains focused on our three key pillars, financial discipline, operational excellence, and growth through strategic partnership. By maintaining this focus, we're steadily positioning the company to seize new opportunities for growth and development, as well as whether some of the sector headwinds we'll talk We're committed to creating long-term shareholder value and we continue to make positive steps both for debt repayment and growth.

Thomas Chippas: Thank you, Markella. Thank you to everyone for joining us today as we talk about our progress so far this quarter and this year. Argo remains focused on our three key pillars: financial discipline, operational excellence, and growth through strategic partnerships. By maintaining this focus, we're steadily positioning the company to seize new opportunities for growth and development, as well as weather some of the sector headwinds we'll talk about. We're committed to creating long-term shareholder value, and we continue to make positive steps both for debt repayment and growth. First, a few comments on the macro environment. In Q3 2024, the macroeconomic environment impacted the Bitcoin mining sector, presenting Q3 challenges that have been felt across the sector, including by Argo. The industry continues to grapple with the lasting impact of the block reward halving in April 2024.

Thomas Cheapest: Thank you Marcelo and thank you to everyone for joining us today as we talk about our progress so far this quarter and this year.

Thomas Cheapest: Our goal remains focused on our three key pillars financial discipline operational excellence and growth through strategic partnerships.

Thomas Cheapest: By maintaining this focus we're steadily positioning the company to seize new opportunities for growth and development as well as whether some of the sector headwinds we'll talk about we're.

We're committed to creating long term shareholder value and we continue to make positive steps both for debt repayment and growth.

Thomas Chippas: First a few comments on the MacCallum environment. In Q3 2024, the macroeconomic environment impacted the Bitcoin mining sector, presenting third quarter challenges that have been felt across the sector, including by Argo. The industry continues to grapple with the lasting impact of the block reward halving in April 2024. The decrease in block issuance revenue strained mining profits, mining profit margins sector wide. Argo has shown resilience in this post halving environment where the average cost to produce one Bitcoin increased due to mining difficulty and fluctuating hash A primary challenge facing miners in Q3 was the increasing cost of production as mining difficulty rose and hash prices declined.

Thomas Cheapest: First a few comments on the macro environment.

Thomas Cheapest: In Q3, 2020 for the macroeconomic environment impacted the bitcoin mining sector, presenting third quarter challenges that have been felt across the sector, including by Argo.

The industry continues to grapple with the lasting impact of the blackboard, having April 2020 for the decrease in block issuance revenue stream mining profits mining profit margins sector wide.

Thomas Chippas: The decrease in block issuance revenue strained mining profit margins sector-wide. Argo has shown resilience in this post-halving environment, where the average cost to produce 1 Bitcoin increased due to mining difficulty and fluctuating hash prices. Our primary challenge facing miners in Q3 was the increasing cost of production as mining difficulty rose and hash prices declined. The network's daily profitability dropped to around 50% of pre-halving levels. Elsewhere, the Bitcoin network difficulty metric reached historically high levels in September. Monetary policy in Q3 has also played a role in shaping the sector's trajectory. The Fed lowered interest rates for the first time in 4 years in September by 50 basis points. The first such reduction since the central bank began increasing rates in an effort to tame decades-high inflation following the global pandemic.

Thomas Cheapest: Argue has shown resilience in this post having environment, where the average cost to produce one bitcoin increased due to mining difficulty and fluctuating hash prices.

Thomas Cheapest: Our primary challenge facing miners in Q3 was the increasing cost of production is mining difficulty rose and hash prices declined.

Thomas Chippas: The network's daily profitability dropped to around 50% of pre-having levels. Elsewhere, the Bitcoin network difficulty metric reached historically high levels in September. Monetary Policy in Q3 has also played a role in shaping the sector's trajectory. The Fed lowered interest rates for the first time in four years in September by 50 basis The first such reduction since the Central Bank began increasing rates in an effort to tame decades-high inflation following the global pandemic. The pause in interest rate hikes previously provided a reprieve to risk assets like Bitcoin, and recent moves increased the attractiveness of alternative investments.

Thomas Cheapest: The network's daily profitability dropped to around 50% of pre having levels elsewhere.

Thomas Cheapest: Elsewhere, the Bitcoin network difficulty metric reached historically high levels in September.

Thomas Cheapest: Monetary policy in Q3 has also played a role in shaping the sector's trajectory the fed lowered interest rates for the first time in four years in September by 50 basis points. The first such reduction since the Central Bank began increasing rates in an effort to attain decades high inflation following the global pandemic.

Thomas Chippas: The pause in interest rate hikes previously provided a reprieve to risk assets like Bitcoin. Recent moves increase the attractiveness of alternative investments like Bitcoin. The shift in policy has likewise created a more stable environment for miners as borrowing costs for infrastructure expansion and energy pricing become less volatile. While inflation pressures have eased in some areas, they do remain a significant concern. Bitcoin miners have been forced to adapt their strategies to sustain profitability amid fluctuating costs. Elsewhere, the peaks of the US spot Bitcoin ETFs' Q1 rally did not repeat in Q3. Despite this, ETF purchases rebounded at the beginning of the quarter. In July, total net BTC inflows to ETFs spiked from 250,000 to 300,000 Bitcoin. After dipping below the 300,000 mark, demand strength was also seen in late September.

Thomas Cheapest: The policy interest rate <unk> previously provided a reprieve to risk assets like bitcoin and recent moves increase the attractiveness of alternative investments like bitcoin.

Thomas Chippas: The shift in policy has likewise created a more stable environment for miners, as borrowing costs for infrastructure expanded. and Energy Pricing become less volatile. While inflation pressures have eased in some areas, they do remain a significant concern.

Thomas Cheapest: The shift in policy is likewise created more stable environment for miners as borrowing costs for infrastructure expansion and energy pricing become less volatile.

Thomas Cheapest: While inflation pressures have eased in some areas.

Do you remain a significant concern the coin miners have been forced to adapt their strategies to sustained profitability amid fluctuating costs.

Thomas Chippas: Bitcoin miners have been forced to adapt their strategies to sustain profitability amid fluctuating Elsewhere, the peaks of the U.S.

Thomas Cheapest: Elsewhere, the peaks of the U S spot Bitcoin Etfs Q1 rally did not repeat in Q3. Despite this despite this ETF purchases rebounded at the beginning of the quarter and July total net BTC inflows to ETF spiked from 250000 to 300000 bitcoin.

Thomas Chippas: spot Bitcoin ETFs Q1 rally did not repeat in Q3. Despite this, ETF purchases rebounded at the beginning of the quarter. In July, total net BTC inflows to ETFs spiked from $250,000 to $300,000. After dipping below the 300,000 mark, demand strength was also seen in late September.

Thomas Cheapest: After dipping below the 300000 Mark demand strength was also seen in late September and of course in the days and weeks post U S elections, we have seen strong demand for bitcoin Etfs.

Thomas Chippas: And of course, in the days and weeks post the U.S. elections, we have seen strong demand for Bitcoin. Recent political developments have raised expectations for more favorable regulatory changes that could further support the industry.

Thomas Chippas: Of course, in the days and weeks post the US elections, we have seen strong demand for Bitcoin and ETFs. Recent political developments have raised expectations for more favorable regulatory changes that could further support the industry. Notwithstanding energy market volatility and mining difficulty remaining key factors influencing the sector's trajectory into Q4, a key future theme is set to be innovation and diversification. Let's turn to our highlights for Q3 2024. In Q3, we mined 123 Bitcoin or approximately 1.3 Bitcoin per day and generated $7.5 million in revenue. For the 9 months ended 30 September 2024, we generated $36.7 million in revenue. Our mining margin for the quarter was 8%, compared to 58% in the same period last year, reflecting the impact of lower Bitcoin prices and higher energy costs.

Thomas Cheapest: Recent political developments have raised expectations for more favorable regulatory changes that could further support the industry.

Thomas Chippas: Notwithstanding energy market volatility and mining difficulty remaining key factors influencing the sector's trajectory into Q4.

Thomas Cheapest: Notwithstanding energy market volatility and mining difficulty remaining key factors influencing the sector trajectory into Q4 of key future theme is set to be innovation and diversification.

Thomas Chippas: Key future theme is set to be innovation and diversity.

Thomas Chippas: Now let's turn to our highlights for the third quarter of 2020. In Q3, we mined 123 BTC, or approximately 1.3 BTC per day, and generated $7.5 million in revenue. For the 9 months ended September 30, we generated $36.7 million in revenue. Our mining margin for the quarter was 8% compared to 58% in the same period last year, reflecting the impact of lower bitcoin prices and higher energy for the nine months ended September 30, 2024. The mining margin was 33% compared to 47% for the prior year. The prior year benefited from significant power credits due to economic curtailment.

Speaker Change: Now, let's turn to our highlights for the third quarter of 2024.

Speaker Change: In Q3, we mined 123 big claim or approximately 1.3 big claim per day.

Speaker Change: And generated $7 $5 million in revenue for the nine months ended September 30, we generated $36 7 million in revenue.

Speaker Change: Our mining margin for the quarter was 8% compared to 58% in the same period last year, reflecting the impact of lower bitcoin prices and higher energy costs for the nine months ended September 32020 for the money margin was 33% compared to 47% for the prior year period.

Thomas Chippas: For the nine months ended September 30, 2024, the mining margin was 33%, compared to 47% for the prior year period. The prior year benefited from significant power credits due to economic curtailments. We reported a net loss of GBP 6.3 million for the quarter and GBP 39.2 million for the nine months ended September 30, 2024. Adjusted EBITDA was GBP -2.1 million for Q3 and GBP +3.9 million for the nine months, compared to GBP +2.4 million and GBP 5.2 million respectively in the prior year periods. During the quarter, we reduced our debt by GBP 12.4 million, including the full repayment of the Galaxy loan, further deleveraging our balance sheet. We ended the quarter with GBP 2.5 million in cash and 4 Bitcoin equivalents held.

Speaker Change: <unk> benefited from significant power credits due to economic curtailments.

Thomas Chippas: We reported a net loss of $6.3 million for the quarter and $39.2 million for the nine months ended September 30, 2024. Adjusted EBITDA was negative 2.1 million dollars for Q3 and positive 3.9 million dollars for the nine months Compared to positive 2.4 million and 5.2 million dollars respectively in the prior year period During the quarter, we reduced our debt by $12.4 million, including the full repayment of the Galaxy Loan, further deleveraging our balance We ended the quarter with two and a half million dollars in cash and four Bitcoin equivalents held.

Speaker Change: We reported a net loss of $6 $3 million for the quarter and $39 $2 million for the nine months ended September 32024, adjusted EBITDA was negative $2 1 million for Q3 and positive $3 9 million for the nine months compared to positive $2 4 million and $5 2 million.

Speaker Change: Respectively in the prior year periods.

Speaker Change: During the quarter, we reduced our debt by $12 $4 million, including the full repayment of the galaxy alone further deleveraging our balance sheet.

Speaker Change: We ended the quarter with two and a half million dollars in cash and four bitcoin equivalents held.

Thomas Chippas: Post-quarter, on the 11th of October 2024, we are pleased to announce the dismissal of the class action lawsuit Murphy v. Argo Blockchain, which was dismissed with prejudice and without leave to amend. We entered into a non-binding letter of intent with the B Group to explore a high-performance computing expansion at Baycomo and commence discussions with our lender regarding expansion of the Baycomo mortgage.

Thomas Chippas: Post quarter, on 11 October 2024, we were pleased to announce the dismissal of the class action lawsuit Murphy v. Argo Blockchain, which was dismissed with prejudice and without leave to amend. We entered into a non-binding letter of intent with B. Group to explore a high-performance computing expansion at Baie-Comeau and commence discussions with our lender regarding expansion of the Baie-Comeau mortgage facility. Finally, we received notice from Galaxy that they will not be renewing the hosting agreement at Helios beyond December 2024. While this marks a change for our hosted fleet of 23,000 S19j Pro miners, we are actively exploring alternative arrangements to maximize the value of these rigs. Let's now move to the next slide, and Charlotte will discuss the comparison of our quarterly results and capital structure. Charlotte?

Speaker Change: Post quarter on all on the 11th of October 2024, we were pleased to announce the dismissal of the class action lawsuit Murphy versus arguably chain, which was dismissed with prejudice and without leave to amend.

Speaker Change: We entered into a nonbinding letter of intent with B group to explore a high performance computing expansion at Bay Como and commenced discussions with our lender regarding expansion of the Bay Como mortgage facility.

Thomas Chippas: Finally, we received notice from Galaxy that they will not be renewing the hosting agreement at Helios beyond December 2020. While this marks a change for our hosted fleet of 23,000 S19J Pro miners, we are actively exploring alternative arrangements to maximize the value of these rigs.

Speaker Change: Finally, we received notice from galaxy that they will not be renewing the hosting agreement of Helios beyond December 2024, all.

Speaker Change: While this marks a change for our hosted fleet of 23000 S 19, J Pearl miners were actively exploring alternative arrangements to maximize the value of these rigs.

Markella: Let's now move to the next slide and Jim will discuss the comparison of our quarterly results and capital structure. Jim.

Let's now move to the next slide and Jim will discuss the comparison of our quarterly results and capital structure Jim.

Jim MacCallum: Thank you, Tom. Our revenue for Q3 was $7.5 million, a decrease compared to $12.4 million in Q2 2024 and $10.4 million in Q3 2023. This decrease was primarily driven by lower Bitcoin production and the lower hash price achieved during the quarter. Despite the Q3 headwinds, our revenue for the nine months ended September 30, 2024 reached $36.7 million, reflecting growth compared to the $34.4 million achieved in the same period last year. Our mining margin for Q3 was 8%, reflecting the challenging hash price environment and higher power costs, which resulted in higher costs per Bitcoin mine. The margin decreased from 41% in Q2.

Charlotte Proctor-Worrall: Thank you, Tom. Our revenue for Q3 was $7.5 million, a decrease compared to $12.4 million in Q2 2024 and $10.4 million in Q3 2023. This decrease was primarily driven by lower Bitcoin production and the lower hash price achieved during the quarter. Despite the Q3 headwinds, our revenue for the 9 months ended 30 September 2024, reached $36.7 million, reflecting growth compared to the $34.4 million achieved in the same period last year. Our mining margin for Q3 was 8%, reflecting the challenging hash price environment and higher power costs, which resulted in higher cost per Bitcoin mined. The margin decreased from 41% in Q2. Our overall mining profit decreased to $6.2 million from $5.1 million in Q2. However, we remain confident in our operational strategy and continue to optimize our fleet for maximum efficiency.

Jim Mccallum: Thank you Tom.

Jim Mccallum: Our revenue for Q3 was $7 $5 million, a decrease compared to $12 $4 million in Q2, 2024, and $10 $4 million in Q3 2023.

Jim Mccallum: This decrease was primarily driven by lower bitcoin production and the lower hedge price achieved during the quarter.

Jim Mccallum: Despite the Q3 headwinds our revenue for the nine months ended September 32024 reached $36 7 million, reflecting growth compared to the $34 4 million achieved in the same period last year.

Jim Mccallum: Our mining margin for Q3 was 8%, reflecting the challenging half price environment and higher firepower across which resulted in higher cost per bitcoin mine.

Jim Mccallum: Arjun decreased from 41% in Q2.

Jim MacCallum: Our overall mining profit decreased to 0.6 million from 5.1 million in Q2. However, we remain confident in our operational strategy and continue to optimize our fleet for maximum efficiency.

Jim Mccallum: Our overall mining profit decreased $2 6 million from $5 1 million in Q2. However, we remain confident in our operational strategy and continue to optimize our fleet for maximum efficiency.

Jim MacCallum: As indicated in our October operational update, R&S, we saw improved results in October and November is also strong. Non-mining operating expenses continued to trend lower, reflecting our focus on cost discipline and operational streamlining. Total non-mining operating expenses decreased by approximately 12% year over year. As Tom mentioned, adjusted EBITDA for the quarter was negative $2.1 million compared to $2.6 million in Q2 2024, reflecting the challenging mining conditions during Q3. for the nine months adjusted EBITDA is positive 4.0 compared to 5.2 million for the prior year. We fully repaid the $12.4 million Galaxy loan during the quarter and we ended the quarter with $2.5 million in cash and held four Bitcoins.

Charlotte Proctor-Worrall: As indicated in our October operational update RNS, we saw improved results in October. November is also strong. Non-mining operating expenses continued to trend lower, reflecting our focus on cost discipline and operational streamlining. Total non-mining operating expenses decreased by approximately 12% year over year. As Thomas mentioned, adjusted EBITDA for the quarter was GBP -2.1 million, compared to GBP 2.6 million in Q2 2024, reflecting the challenging mining conditions during Q3. For the nine months, adjusted EBITDA is GBP +4.0 compared to GBP 5.2 million for the prior year. We fully repaid the GBP 12.4 million Galaxy loan during the quarter. We ended the quarter with GBP 2.5 million in cash and held 4 Bitcoin. Looking ahead, we are optimistic about our recent initiatives, including the non-binding LOI with the B. Group to explore a significant HPC expansion at Baie-Comeau, which will help diversify our revenue streams.

Jim Mccallum: As indicated in our October operational update Rns, we saw improved results in October and November is also strong.

Jim Mccallum: Non mining operating expenses continued to trend lower reflecting our focus on cost discipline and operational streamlining.

Jim Mccallum: Total non <unk> operating expenses decreased by approximately 12% year over year.

As Tom mentioned adjusted EBITDA for the quarter was negative $2 1 million compared to $2 6 million in Q2, 2024, reflecting the challenging mining conditions during Q3.

For the nine months adjusted EBITDA is positive 4.0 compared to $5 2 million for the prior year.

We fully repaid the $12 4 million galaxy loan during the quarter and we ended the quarter with $2 $5 million in cash and held for bitcoin.

Jim MacCallum: Looking ahead, we are optimistic about our recent initiatives, including the non-binding LOI with the B Group to explore a significant HPC expansion at Baycomo, which will help diversify our revenue stream.

Jim Mccallum: Looking ahead, we are optimistic about our recent initiatives, including the nonbinding LOI with the B group to explore a significant HBC expansion at Bay, Como, which will help diversify our revenue streams.

Jim MacCallum: Let's now move to the next slide where we will review our capital structure in more detail. As we discussed during our Q2 earnings call, we fully repaid the Galaxy loan in August. This achievement was made possible through a combination of non-core asset sales like the Mirabelle site, operational cash flows, and the 8.3 million equity raise completed in July. The early repayment came four months ahead of schedule and nearly 18 months ahead of the original plan. This repayment reduces our financial liabilities, eliminates $1.1 million in monthly amortization payments, and improves our cash flow. Most importantly, it strengthens our balance sheet and provides the financial flexibility to focus the future growth initiatives, including our HPC expansion at Baycoma.

Charlotte Proctor-Worrall: Let's now move to the next slide, where we will review our capital structure in more detail. As we discussed during our Q2 earnings call, we fully repaid the Galaxy loan in August. This achievement was made possible through a combination of non-core asset sales, like the Mirabel site, operational cash flows, and the GBP 8.3 million equity raise completed in July. The early repayment came 4 months ahead of schedule and nearly 18 months ahead of the original plan. This repayment reduces our financial liabilities, eliminates GBP 1.1 million in monthly amortization payments, and improves our cash flow. Most importantly, it strengthens our balance sheet and provides the financial flexibility to focus on future growth initiatives, including our HPC expansion at Baie-Comeau. Repaying the Galaxy loan marks a key milestone for Argo. Successfully paying off GBP 35 million in high-interest debt ahead of schedule highlights Argo's strong financial discipline.

Jim Mccallum: Let's now move to the next slide where we will review our capital structure in more detail.

Jim Mccallum: As we discussed during our Q2 earnings call, we fully repaid the galaxy loan in August.

Jim Mccallum: This achievement was made possible through a combination of noncore asset sales like the Mirabel site.

Jim Mccallum: Operational cash flows.

Jim Mccallum: And the $8 3 million equity raise completed in July.

Jim Mccallum: The early repayment came four months ahead of schedule and nearly 18 months ahead of the original plan.

Jim Mccallum: This repayment reduces our financial liabilities.

Eliminated $1 $1 million in monthly amortization payments and improves our cash flow.

Jim Mccallum: Most importantly, it strengthens our balance sheet and provides the financial flexibility to focus our future growth initiatives, including our HBC expansion at Bay coma.

Jim MacCallum: Repaying the Galaxy loan marks a key milestone for Argo successfully paying off $35 million in high interest debt ahead of schedule highlights Argo's strong financial discipline. With the Galaxy loan fully repaid, our remaining debt obligations include $40 million in unsecured notes, which mature in November 2026, and a $1 million mortgage on our Baycomo facility.

Jim Mccallum: Repaying the Galaxy loan marks a key milestone for Argo successfully paying off $35 million and high interest debt ahead of schedule highlights argo's strong financial discipline.

Charlotte Proctor-Worrall: With the Galaxy loan fully repaid, our remaining debt obligations include $40 million in unsecured notes, which mature in November 2026, and a $1 million mortgage on our Baie-Comeau facility. With that, I'll pass it back to Thomas.

Jim Mccallum: With the Galaxy loan fully repaid our remaining debt obligations include $40 million in unsecured notes, which mature in November 2026, and a $1 million mortgage on our <unk> facility.

Thomas Chippas: With that, I'll pass it back to Tom. Thanks, Jim. So, regarding Helios, our hosting agreement concludes at the end of December 2024. This marks a significant transition for the fleet of 23,000 S19J Pro miners, and we're exploring various options, including finding alternative hosting solutions or selling the machine. We're actively engaging with the market as well as reviewing hosting proposals to determine the most cost-effective and strategic path forward. Our priority is to ensure operational continuity while aligning with our long-term goals.

Tom: With that I'll pass it back to Tom.

Thomas Chippas: Thanks, Charlotte. Regarding Helios, our hosting agreement concludes at the end of December 2024. This marks a significant transition for the fleet of 23,000 S19j Pro miners, and we're exploring various options, including finding alternative hosting solutions or selling the machines. We're actively engaging with the market as well as reviewing hosting proposals to determine the most cost-effective and strategic path forward. Our priority is to ensure operational continuity while aligning with our long-term goals. With respect to Baie-Comeau and HPC, let's discuss our progress with High-Performance Computing. We recently signed a non-binding letter of intent with the B. Group, a specialist in HPC solutions, to explore a significant expansion to Baie-Comeau.

Thanks, Jim.

Thomas Cheapest: So regarding Helios are hosting agreement concludes at the end of December 2024.

Thomas Cheapest: This marks a significant transition for the fleet of 23000 S 19, J pro miners and we're exploring various options, including finding alternative hosting solutions or selling the machines.

Thomas Cheapest: Actively engaging with the market as well as reviewing hosting proposals to determine the most cost effective and a strategic path forward. Our priority is to ensure operational continuity, while aligning with our long term goals.

Thomas Chippas: with respect to Baycomo and HPC. Let's discuss our progress with high performance. We recently signed a non-binding letter of intent with the B Group, a specialist in HPC solutions, to explore a significant expansion debate. The recently completed feasibility study confirms that we can adapt 12 megawatts of our existing infrastructure to support AI services. with the potential to expand by an additional 11 megawatts, bringing the total potential capacity there to 23 megawatts. Our immediate focus is on finalizing the project planning and design. Securing Definitive Agreements with B and Acquiring Customers. We're also working on funding for the Project CapEx and, based upon what we know today, aiming for a go-live in April of 2025.

Thomas Cheapest: With respect.

Thomas Cheapest: To be Como and.

Thomas Cheapest: And H B C, let's discuss our progress with high performance computing.

Thomas Cheapest: We recently signed a non binding letter of intent with Citigroup the specialist in HBC solutions to explore a significant expansion to bake Homo.

Thomas Chippas: The recently completed feasibility study confirms that we can adapt 12 MW of our existing infrastructure to support AI servers with the potential to expand by an additional 11 MW, bringing the total potential capacity there to 23 MW. Our immediate focus is on finalizing the project planning and design, securing definitive agreements with B, and acquiring customers. We're also working on funding for the project CapEx and based upon what we know today, aiming for a go-live in April 2025. This initiative is a key step in diversifying our revenue streams and tapping into high-growth markets such as AI and related data processing. Furthering our conversation around growth and partnerships, as demand from hyperscalers grows, HPC facilities are crucial for supporting sectors like AI and data analytics.

Thomas Cheapest: The recently completed feasibility study confirms that we can adapt 12 megawatts of our existing infrastructure to support AI servers with the potential to expand by an additional 11 megawatts, bringing the total potential capacity there to 23 megawatts.

Thomas Cheapest: Our immediate focus is on finalizing the project planning and design securing definitive agreements with <unk> and acquiring customers. We're also working on funding for the project Capex and based upon what we know today aiming for a go live in April of 2025. This.

Thomas Chippas: This initiative is a key step in diversifying our revenue streams and tapping into high-growth markets such as AI and related data processing. Furthering our conversation around growth and partnerships, as demand from hyperscalers grows, HPC facilities are crucial for supporting sectors like AI and data analytics. Bitcoin miners are uniquely positioned to meet this demand, leveraging their access to scalable power and extensive experience in data center operations. These strengths position Argo to support hyperscalers and drive growth in this rapidly expanding market. We're also focused on securing low cost, reliable power to maintain sustainable growth and ensure competitive operations.

Thomas Cheapest: This initiative is a key step in diversifying our revenue streams and tapping into high growth markets, such as AI and related data processing.

Thomas Cheapest: Okay.

Thomas Cheapest: Furthering our conversation around growth and partnerships as demand from Hyperscale is grows H P. C facilities are crucial for supporting sectors like AI and data analytics big.

Thomas Chippas: Bitcoin miners are uniquely positioned to meet this demand, leveraging their access to scalable power and extensive experience in data center operations. These strengths position Argo to support hyperscalers and drive growth in this rapidly expanding market. We're also focused on securing low-cost, reliable power to maintain sustainable growth and ensure competitive operations. In this context, our commitment to operational flexibility will be vital as we navigate evolving market conditions and energy dynamics. For the remainder of 2024, the company will remain focused on its three core pillars: financial discipline, operational excellence, growth, and strategic partnerships. On behalf of everyone at Argo, I would like to extend our gratitude to all shareholders, stakeholders, and the incredible Argo team. We remain committed to optimizing our capital structure and delivering value for our shareholders. With that, I'll pass it back to Investor Meet Company, Markella, for any questions. Thank you.

Thomas Cheapest: Big coin miners are uniquely positioned to meet this demand leveraging their access to scalable power and extensive experience in data center operations.

Thomas Cheapest: These strengths position Argo to support Hyperscale theirs and drive growth in this rapidly expanding market.

Thomas Cheapest: We're also focused on securing low cost reliable power to maintain sustainable growth and ensure competitive operations in this context, our commitment to operational flexibility will be vital as we navigate evolving market conditions and energy dynamics.

Thomas Chippas: In this context, our commitment to operational flexibility will be vital as we navigate evolving market conditions and energy dynamics.

Thomas Chippas: For the remainder of 2024, the company will remain focused on its three core pillars, financial discipline, operational excellence, growth, and strategic partnership. On behalf of everyone at Argo, I would like to extend our gratitude to all shareholders, stakeholders, and the incredible Argo team. We remain committed to optimizing our capital structure and delivering value for our shareholders.

Thomas Cheapest: For the remainder of 'twenty 'twenty four the company will remain focused on three core pillars financial discipline operational excellence growth and strategic partnerships.

Speaker Change: On behalf of everyone at Argo I would like to extend our gratitude to all shareholders stakeholders and the incredible Argo team, we remain committed to optimizing our capital structure and delivering value for our shareholders with that I'll now pass it back to Investor meeting Mark Heller for any questions. Thank you that's great. That's great Thomas Kim. Thank you very much indeed from 19th.

Markella: With that, I'll pass it back to Investor Media Markella for any questions. Thank you. That's great. That's great, Thomas.

Operator: That's great. Thomas, Jim, thank you very much indeed for updating investors. Ladies and gentlemen, please do continue to submit your questions just using the Q&A tab situated on the right-hand corner of your screen. Just while the guys take a few moments to review your questions submitted already, I'd just like to remind you the recording of this presentation along with a copy of the slides may be available on Investor Meet Company. Markella, as you can see, we have a number of questions from investors today, so thank you to everybody for your engagement this afternoon. If I may just hand back to you just to review those questions and moderate us through the Q&A session, and I'll pick up from you at the end.

Markella: Jim, thank you very much indeed for updating investors. Ladies and gentlemen, please do continue to submit your questions, just using the Q&A tab situated on the right-hand corner of your screen, which is why the guys take a few moments to review your questions submitted already.

Speaker Change: First the things you have in place to continue to submit your questions just using the Q&A attempts to tweak it on the right hand corner of your screen, but it's one of the guys take a few months reveal questions to majority I just like to remind you that a recording of this presentation along with a couple of the slides that might be available on investment company.

Markella: I'd just like to remind you the recording of this presentation, along with a couple of the slides that may be available on InvestorMeet Company. Marcella, as you can see, you've had a number of questions from investors today, so thank you to everybody for your engagement this afternoon.

Jim Mccallum: Mccalla as you can see you've had a number of questions from investors today. So thank you to everybody for your engagement yourself to me if I may just hand back to you just to review those are questions moderator through the Q&A session and I'll pick up from it yet.

Markella: If I may just hand back to you just to review those questions and moderate us through the Q&A session, and I'll pick up from you.

Markella: Thank you, Mark, and thank you, everyone. The first question comes from Kevin Dede from H.E. Wainwright. Have you made any further decisions regarding the 2.4 Exahash fleet at Helios after year-end? Additionally, how should you think of Argo's hash rate trajectory heading into next? and that should be the right.

[Financial Communications Representative] (Argo Blockchain): Thank you, Mark, and thank you, everyone. The first question comes from Kevin Dede from H.C. Wainwright. Have you made any further decisions regarding the 2.4 exahash fleet at Helios after year-end? Additionally, how should you think of Argo's hash rate trajectory heading into next year? That should be directed to Thomas.

Speaker Change: Thank you Mark and thank you everyone.

And the first question comes from Kevin <unk> from H C. Wainwright have you made any further decisions regarding that 2.4 extra harsh fleet at Tds. After year end. Additionally, how should you think of the Argos has rate trajectory heading into next year.

Speaker Change: And that shouldn't be interacted to Thomas.

Thomas Chippas: Thanks, Marcella. And thanks, Kevin, for following up with this. As noted previously, we're actively exploring options for the 2.4x of Hashley currently at Helios. Since Galaxy notified us that they will not renew the hosting agreement beyond December of 2024, we've been evaluating various pathways to ensure the continued operation of the fleet, including alternative hosting arrangements, strategic opportunities, or potential asset sale.

Thomas Chippas: Thanks, Markella. Thanks, Kevin. Following up with this, as noted previously, we're actively exploring options for the 2.4 exahash fleet currently at Helios. Since Galaxy notified us that they will not renew the hosting agreement beyond December 2024, we've been evaluating various pathways to ensure the continued operation of the fleet, including alternative hosting arrangements, strategic opportunities, or potential asset sale. At this stage, we have not made a final decision, our focus remains on identifying the option that provides the best balance of operational efficiency and financial flexibility. As we move forward, we'll certainly keep shareholders and stakeholders updated on our plans. Regarding the second part of your question, hash rate outlook for next year. It will largely depend on the chosen path for the Helios fleet and our broader growth initiatives, including the potential HPC expansion just discussed.

Speaker Change: Thanks, Michaela Thanks, Kevin.

Speaker Change: Following up with this.

As noted previously we're actively exploring options for the two point Forex actually currently at Helios.

Speaker Change: Since galaxy notified us that they will not renew the hosting agreement beyond December 24, we've been evaluating various pathways to ensure the continued operation of the fleet, including.

Speaker Change: Alternative hosting arrangements strategic opportunities or potential asset sale.

Thomas Chippas: At this stage, we have not made a final decision, but our focus remains on identifying the option that provides the best balance of operational efficiency and financial As we move forward, we'll certainly keep, you know, shareholders and stakeholders updated on our plans. Regarding the second part of your question, hash rate outlook for next year, it will largely depend on the chosen path for the Helios fleet and our broader growth initiatives, including the potential HPC expansion just discussed. These initiatives aim to diversify and strengthen our operations, which we think will support, you know, shareholder value. Thanks, Kevin.

Speaker Change: At this stage, we have not made a final decision, but our focus remains on identifying the option that provides the best balance of operational efficiency and financial flexibility.

Speaker Change: As we move forward, we'll certainly keep shareholders and stakeholders updated on our plans.

Speaker Change: Regarding the second part of your question.

How should we the outlook for next year it will largely depend on the the chosen paths are the Helios fleet and our broader growth initiatives, including the Ah.

Speaker Change: Potential HBC expansion just discussed these initiatives.

Thomas Chippas: These initiatives aim to diversify and strengthen our operations, which we think will support shareholder value. Thanks, Kevin. Appreciate the question.

Speaker Change: Aimed to diversify and strengthen our operations, which we think will support.

Speaker Change: Shareholder value.

But thanks, Kevin appreciate the question.

Thomas Chippas: And thank you, Thomas.

[Financial Communications Representative] (Argo Blockchain): Thank you, Thomas. The next question, again from Kevin Dede. It's this time directed to Charlotte. The big issue is always capital allocation. What are Argo's priorities in this regard? CapEx site development, alternative site acquisitions, big purchases. What are the company's priorities, and what progress has been made securing inroads in the HPC ecosystem with GPU customer financing? What is the timeline of execution investors might set as milestones in monitoring Argo's performance here?

Thomas Cheapest: And thank you Thomas the next question again from Kevin that it's this time directed to Jim Debbie.

Jim MacCallum: The next question, again, from Kevin Dede, it's this time directed to Jim. The big issue is always capital allocation. What are Argo's priorities in this regard? Quebec site development, alternative site acquisitions, big purchases. What are the company's priorities and what progress has been made securing inroads in the HPC ecosystem with JPUs, customer financing? What is the timeline of execution investors might set as milestones in monitoring Argo's performance here?

The big issue is always capital allocation what are Argos priorities in this regard, Quebec site development alternative side acquisitions, making purchases what are the company's priorities and what progress has been made securing inroads in the HBC ecosystem with JP use customer financing what is the timeline of execution investors might set of my.

Ill stones and monitoring Argos performance here.

Jim MacCallum: Yeah, thanks, Kevin. Yeah, our capital allocation focuses on initiatives that we've mentioned that will drive sustainable growth and diversification. We signed this non-binding LOI with the B Group, which outlines our plans to repurpose 12 megawatts of our existing infrastructure for HPC and also the possible expansion for an additional 11 megawatts. This aligns with our strategy to leverage current assets while capitalizing on the growth growing demand for HPC services. In parallel, we are advancing our position in the HPC ecosystem with the goal of bringing operations online in the first half of 2025. Regarding our Bitcoin mining operations, decisions around redeploying or potentially selling the 2.4 Exahash fleet from Helios will be guided by market dynamics and long-term value considerations.

Charlotte Proctor-Worrall: Thanks, Kevin. Our capital allocation focuses on initiatives that we've mentioned that will drive sustainable growth and diversification. We signed this non-binding LOI with the B. Group, which outlines our plans to repurpose 12 MW of our existing infrastructure for HPC and also the possible expansion for an additional 11 MW. This aligns with our strategy to leverage current assets while capitalizing on the growing demand for HPC services. In parallel, we are advancing our position in each HPC ecosystem with the goal of bringing operations online in H1 2025. Regarding our Bitcoin mining operations, decisions around redeploying or potentially selling the 2.4 exahash fleet from Helios will be guided by market dynamics and long-term value considerations. We're committed to keeping investors informed on our progress as we achieve key milestones across both HPC and Bitcoin mining. Thank you.

Speaker Change: Yeah. Thanks, Kevin Yeah, our capital allocation focuses on initiatives that we've mentioned that will drive sustainable growth and diversification.

Speaker Change: We signed this nonbinding LOI with the B group, which outlines our plans to repurpose 12 megawatts of our existing infrastructure for.

Speaker Change: For H B C and also the possible expansion for an additional 11 megawatts. This aligns with our strategy to leverage current assets, while capitalizing on the growth growing demand for <unk> services.

Speaker Change: In parallel we are advancing our position in each H P. C ecosystem with the goal of bringing operations online.

In the first half of 2025 regarding our bitcoin mining operations decisions around redeploying or potentially selling the 2.4 extra hashed fleet from Helios will be guided by market dynamics and long term value considerations.

Jim MacCallum: We're committed to keeping investors informed on our on our progress as we achieve key milestones across both HPC and Bitcoin mining.

We're committed to keeping investors informed on our progress as we achieve key milestones across both HBC and bitcoin mining.

Jim MacCallum: Thank you. Thank you, Jim.

Speaker Change: Thank you.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. Next question comes from Bill Papanastasiou from Stifel and would be directed to Thomas. What plans are in store for the fleet that was at Helios? Are there any short-term hosting options available? What could the process look like?

Thomas Chippas: Next question comes from Bill Papanastasiou from CFO and would be directed to Thomas. What plans are in store for the fleet that was at Helios? Are there any short term hosting options available? What could the process look like? Thanks, Bill. I don't want to repeat everything I said in response to Kevin's question, but, you know, our hosting agreement is set to conclude at the end of December 24. As I stated in the presentation, this will be a big transition for that fleet. We are carefully evaluating all the options and we want to make sure that we prioritize the choice and strategy that best aligns with our long term objectives and delivers maximum value.

Thank you Jim next question comes from buildup, Mr. Xu from Stifel and would be directed to Thomas what plans are in store for the fleet that was that he is are there any short term hosting options available what could the prospects look like.

Thomas Chippas: Thanks, Bill. I don't want to repeat everything I said in response to Kevin's question. Our hosting agreement is set to conclude at the end of December 2024. As I stated in the presentation, this will be a big transition for that fleet. We are carefully evaluating all the options, and we want to make sure that we prioritize the choice and strategy that best aligns with our long-term objectives and delivers maximum value. We're trying to be flexible as we explore all those, and we'll keep our focus on ensuring continuity and best positioning for our future growth opportunities.

Speaker Change: Thanks Bill.

Thomas Cheapest: I don't want to repeat everything I said in response to Kevin's question, but you know our hosting agreement is set to conclude at the end of December 24.

Thomas Cheapest: As I stated in the presentation. This will be a big transition for that fleet, we are carefully evaluating all the options.

Thomas Cheapest: And we want to make sure that we.

Thomas Cheapest: Prioritize the choice in strategy that best aligns with our long term objectives and delivers maximum value. So we're trying to be flexible as we explore all those and we'll keep our focus on ensuring the continuity and best positioning for our future growth opportunities.

Thomas Chippas: So we're trying to be flexible as we explore all those and we'll keep our focus on ensuring continuity and best positioning for our future growth opportunities.

Thomas Chippas: Thank you, Thomas.

[Financial Communications Representative] (Argo Blockchain): Thank you, Thomas. Next question, again from Bill Papanastasiou, this time directed to Charlotte. When may we expect a definitive agreement, and what's the timeline to bringing the HPC operations online? What are you able to discuss the CapEx financing and economics of the deal?

Speaker Change: Thank you Thomas next question again from built up honest with you. This time directed to Jim when May we expect the definitive agreement and what's the timeline to bringing the HBC operations online what are you able to discuss the topic financing and economics of the deal.

Jim MacCallum: Next question again from Bill Papanastasiou, this time directed to Jim. When may we expect a definitive agreement and what's the timeline to bringing the HPC operations online? What are you able to discuss the topics financing and economics of the deal? Thanks, Bill.

Charlotte Proctor-Worrall: Thanks, Bill. We're excited about the potential HPC expansion at Baie-Comeau. While still in the early stages, significant progress has been made, including the signing of a non-binding letter of intent with the B. Group, they're an HPC specialist, to explore a substantial deployment infrastructure at the site. Discussions are now in the advanced stages as we continue with due diligence and financing evaluations, working toward a definitive agreement. Based on current timelines, we anticipate bringing HPC capabilities online by approximately April 2025. Although it is too early to pinpoint specific revenue contributions, we expect this expansion to begin adding value relatively quickly once operational. This initiative represents a pivotal step in our strategy to diversify and strengthen our revenue streams, providing a balanced and resilient foundation alongside our Bitcoin mining operations. Thank you.

Thanks Bill.

Jim MacCallum: We're excited about the potential HPC expansion at Baycomo. While still in the early stages, significant progress has been made, including the signing of a non-binding letter of intent with the B Group, which they're an HPC specialist to explore a substantial deployment infrastructure at the site. Discussions are now in the advanced stages as we continue with due diligence and financing evaluations working toward a definitive agreement. Based on current timelines, we anticipate bringing HPC capabilities online by approximately April 2025.

Jim Mccallum: We're excited about the potential HBC expansion, if they come all while still in the early stages significant progress has been made.

Jim Mccallum: The signing of a non binding letter of intent.

Jim Mccallum: With the <unk> group and <unk>, which are there in HCC specialists to explore a substantial deployment infrastructure at the site discussions are now in the advanced stages as we continue with due diligence and financing evaluations working toward a definitive agreement.

Based on current timelines, we anticipate bringing H P C capabilities online by approximately April of 2025.

Jim MacCallum: Hello, it is too early to pinpoint specific revenue contributions, we expect this expansion to begin adding value relatively quickly once operational. This initiative represents a pivotal step in our strategy to diversify and strengthen our revenue streams, providing a balanced and resilient foundation alongside our Bitcoin mining operations.

Jim Mccallum: Although it is too early to pinpoint specific revenue contributions we expect this expansion to begin adding value relatively quickly once operational.

Jim Mccallum: This initiative represents a pivotal step in our strategy to diversify and strengthen our revenue streams, providing a balanced and resilient foundation alongside our bitcoin mining operations.

Jim MacCallum: Thank you. Thank you, Jim.

Speaker Change: Thank you.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. The next question was pre-submitted ahead of the earnings call and would be directed again for you. Could you share an update on Argo's current debt position and any steps being taken to strengthen the balance sheet?

Speaker Change: Thank you Jim. The next question was a pre submitted ahead of the earnings call.

Jim MacCallum: The next question was pre-submitted ahead of the earnings call and would be directed again for you. Could you share an update on Argo's current debt position and any steps being taken to strengthen the balance? Yeah, thanks for the question. As noted previously, we have retired the Galaxy debt, leaving the unsecured notes as our primary outstanding debt, which are non-amortizing and mature in November 2026. Our debt service costs are greatly reduced as the bonds which mature in late 26 are interest only.

Speaker Change: And would be directed again for you could you share an update on our current debt position and any steps being taken to strengthen the balance sheet.

Charlotte Proctor-Worrall: Thanks for the question. As noted previously, we have retired the Galaxy debt, leaving the unsecured notes as our primary outstanding debt, which are non-amortizing and mature in November 2026. Our debt service costs are greatly reduced as the bonds, which mature in late 2026, are interest only. We have a small mortgage remaining on our Baie-Comeau facility that we are looking to expand to help finance the potential HPC expansion at Baie-Comeau. Strengthening our balance sheet remains a priority, and we'll keep shareholders updated as we progress.

Speaker Change: Yes.

Speaker Change: Thanks for the question as noted previously we have retired the galaxy debt, leaving the unsecured notes as our primary outstanding debt, which are non non amortizing and mature in November 2026, our debt service costs are greatly reduced as the bonds, which mature in late 'twenty six are interest only.

Jim MacCallum: We have a small mortgage remaining on our Bay Como facility that we are looking to expand to help finance the potential HPC expansion at Bay Como. Strengthening our balance sheet remains a priority and we'll keep shareholders updated as we progress.

Speaker Change: We have a small mortgage remaining on the <unk> facility that we are looking to expand to help finance a potential HBC expansion at Bay Como strengthening our balance sheet remains a priority and we will keep shareholders update it as we as we progress.

Jim MacCallum: Thank you, Jim.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. Next question is directed to Thomas, again, a pre-submitted one in the chat. With both Bitcoin mining and High Performance Computing now part of Argo's strategy, how is the company planning to allocate resources between the two segments to maximize shareholder value?

Jim Mccallum: Thank you. Jim next question is directed to Thomas again, a pre submitted one in the chat with both bitcoin mining and high performance computing now part of our growth strategy. How is the company plans to allocate resources between the two segments to maximize shareholder value.

Thomas Chippas: Next question is directed to Thomas. Again, a pre-submitted one in the chat. With both Bitcoin mining and high-performance computing now part of Argo's strategy, how is the company planning to allocate resources between the two segments to maximize shareholder value?

Thomas Chippas: Thanks, Marcella. Our capital allocation strategy is focused on generating long term shareholder returns, while balancing, you know, the dynamics of Bitcoin mining and HPC. We see Bitcoin mining remaining part of our operations. And as we build out HPC capabilities, we're going to leverage our infrastructure to access additional revenue streams. This diversification should enhance our ability to generate returns across different market conditions. Our approach is to allocate capital where it creates the greatest value and aligns with our strengths in energy and infrastructure management, which should position us to thrive in both segments as opportunities evolve.

Thomas Chippas: Thanks, Markella. Our capital allocation strategy is focused on generating long-term shareholder returns, while balancing the dynamics of Bitcoin mining and HPC. We see Bitcoin mining remaining part of our operations. As we build out HPC capabilities, we're going to leverage our infrastructure to access additional revenue streams. This diversification should enhance our ability to generate returns across different market conditions. Our approach is to allocate capital where it creates the greatest value and aligns with our strengths in energy and infrastructure management, which should position us to thrive in both segments as opportunities evolve.

Thanks Michaela.

Thomas Cheapest: Our capital allocation strategy is focused on generating long term shareholder returns.

Thomas Cheapest: While balancing the dynamics of bitcoin mining and HBC, we see bitcoin mining remaining part of our operations.

Thomas Cheapest: And as we build out HBC capabilities.

Thomas Cheapest: We're going to leverage our infrastructure to access additional revenue streams. This diversification should enhance our ability to generate returns.

Across different market conditions, our approach is to allocate capital where it creates the greatest value and aligns with our strengths in energy and infrastructure management, which should position us to thrive in both segments as opportunities evolve.

Thomas Chippas: Thank you, Thomas.

[Financial Communications Representative] (Argo Blockchain): Thank you, Thomas. Next question is a pre-submitted one ahead of the earnings call and directed to Charlotte. How does Argo plan to manage the potential volatility of Bitcoin price in relation to its broader business model, particularly with the added HPC component?

Speaker Change: Thank you. Thomas next question is a pre submitted one ahead of the earnings call and direct it to Jim How does Oracle plan to manage the potential volatility of bitcoin price in relation to its broader business model, particularly with the attic HBC component.

Jim MacCallum: Next question is a pre-submitted one ahead of the earnings call and directed to Jim. How does Argo plan to manage the potential volatility of Bitcoin price in relation to its broader business model, particularly with the added HPC component?

Jim MacCallum: Thanks Markella for the question. The Bitcoin market does have inherent volatility, which impacts miners earnings, but our approach to managing this includes building a more resilient business model. By exploring HPC at Baycomo, we're positioning Argo to benefit from diversified revenue streams beyond Bitcoin. The HPC expansion would complement our mining operations by enabling us to leverage our infrastructure for high growth computational markets such as AI and data processing, which offer more predictable income. This diversification reduces our exposure to Bitcoin price fluctuations, and enhances our ability to generate value across multiple sectors. As a result, the addition of HPC helps balance our portfolio, creating a stronger foundation to support growth, regardless of cryptocurrency market conditions.

Charlotte Proctor-Worrall: Thanks, Markella, for the question. The Bitcoin market does have inherent volatility, which impacts miners' earnings. Our approach to managing this includes building a more resilient business model. By exploring HPC at Baie-Comeau, we're positioning Argo to benefit from diversified revenue streams beyond Bitcoin. The HPC expansion would complement our mining operations by enabling us to leverage our infrastructure for high-growth computational markets such as AI and data processing, which offer more predictable income. This diversification reduces our exposure to Bitcoin price fluctuations and enhances our ability to generate value across multiple sectors. As a result, the addition of HPC helps balance our portfolio, creating a stronger foundation to support growth regardless of cryptocurrency market conditions.

Jim Mccallum: Thanks, Michaela for the question.

Jim Mccallum: The bitcoin market does have inherent volatility, which impacts miners earnings, but our approach to managing this includes building a more resilient business model by exploring HBC, yet they como, we're positioning argo to benefit from diversified revenue streams beyond bitcoin.

Jim Mccallum: The HBC expansion would complement our mining operations by enabling us to leverage our infrastructure for high growth competition in markets, such as AI and data processing, which offer more predictable income.

Jim Mccallum: The difference this diversification reduces our exposure to bitcoin price fluctuations and enhances our ability to generate value across multiple sectors. As a result. The addition of HBC helps balance our portfolio, creating a stronger foundation to support growth regardless of crypto currency market conditions.

Jim MacCallum: Thank you, Jim.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. Another pre-submitted question directed for you. Are there any plans to start paying dividends?

Speaker Change: Thank you Jim another pre submitted question directed for you are there any plans to start paying dividend.

Jim MacCallum: Another pre-submitted question directed for you.

Jim MacCallum: Are there any plans to start paying dividends? Yeah, thanks. Currently, we have no plans to initiate a dividend, excess cash will be directed towards strengthening our balance sheet and supporting strategic growth initiatives to drive future growth.

Charlotte Proctor-Worrall: Yeah, thanks. Currently, we have no plans to initiate a dividend. Excess cash will be directed towards strengthening our balance sheet and supporting strategic growth initiatives to drive future growth.

Jim Mccallum: Yeah. Thanks currently we have no plans to initiate a dividend.

Jim Mccallum: Cash will be directed towards strengthening our balance sheet and supporting strategic growth initiatives.

To drive future growth.

Jim MacCallum: Thank you Jim. Another pre-submitted question for you again. Could you provide an update on the recent status of the class action loss? Yeah, as Tom mentioned, as we and as we RNS previously, we're pleased to report that the class action lawsuit was dismissed in early October by the Southern District of New York, both without prejudice and without leave to amend. So we were very pleased with this resolution.

[Financial Communications Representative] (Argo Blockchain): Thank you, Jim. Another pre-submitted question for you again. Could you provide an update on the recent status of the class action lawsuit?

Speaker Change: Thank you Jim another pre submitted question for you again could you provide an update on the recent status of the class action lawsuit.

Charlotte Proctor-Worrall: Yeah. As Tom mentioned, and as we RNS'd previously, we're pleased to report that the class action lawsuit was dismissed in early October by the Southern District of New York, both without prejudice and without leave to amend. We're very pleased with this resolution.

Yeah, as Tom mentioned, as we and as we rns previously.

Speaker Change: We're pleased to report that the class action lawsuit was dismissed in.

Speaker Change: In early October by the Southern District of New York.

Speaker Change: Both without prejudice and without leave to amend and so we were very pleased with this resolution.

Jim MacCallum: Thank you, Jim.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. Next question is directed to Thomas, and another pre-submitted one. Could you speak on fleet efficiency in current hash rate environment?

Thank you Jim next question is directed to Thomas and another.

Thomas Chippas: Next question is directed to Thomas and another pre-submitted one. Could you speak on fleet efficiency in current hash rate environment? Certainly. So our current fleet efficiency is about 30 joules per terahash across the two sites, with flexibility to downclock those machines for even greater efficiency when necessary. Certainly, this adaptability allows us to optimize the performance of the fleet in response to changes in hashrate energy environments, ensuring that the current fleet remains cost effective.

Thomas Cheapest: Submitted one could you speak on fleet efficiency and current tax rate environment.

Thomas Chippas: Certainly. Our current fleet efficiency is about 30 joules per terahash across the 2 sites, with flexibility to down clock those machines for even greater efficiency when necessary. Certainly, this adaptability allows us to optimize the performance of the fleet in response to changes in hash rate energy environments, ensuring that the current fleet remains cost-effective.

Thomas Cheapest: Certainly so our current fleet efficiency is about 30 jewels for taro hash across the two sites with flexibility to down clock those machines for even greater efficiency when necessary.

Certainly this adaptability allows us to optimize the performance of the fleet in response to changes in house right hash rate energy environments, ensuring that the current fleet remains remains cost effective.

Thomas Chippas: Thank you, Thomas. Next question also pre-submitted and addressing you is exploring the switch to HPC hinting a shift in the company's core operation. Thanks, Markella.

[Financial Communications Representative] (Argo Blockchain): Thank you, Thomas. Next question also pre-submitted and addressing you. Is exploring the switch to HPC hinting a shift in the company's core operations?

Thomas Cheapest: Thank you Thomas.

Speaker Change: Next question also a pre submitted and addressing you.

Speaker Change: <unk> is exploring the switch to HBC hinting a shift in the company's cooperation.

Thomas Chippas: Thanks, Markella. As noted, Argo continues to evaluate strategic opportunities and market conditions, we are open-minded and committed to exploring all options. We see significant potential in high performance computing as the demand for computational power continues to grow. We see it as an opportunity to diversify our revenue streams. As we look ahead, we're keeping an open mind about what the appropriate mix of HPC and mining might be, we'll certainly firm up our opinion in this regard as we further our conversations with B. Group and as more data becomes available.

Michaela: Oh, Thanks Michaela so.

Thomas Chippas: So, as noted, Argo continues to evaluate strategic opportunities and market conditions and we are open minded and committed to exploring all options. We see significant potential in high-performance computing as the demand for computational power continues to grow, and we see it as an opportunity to diversify our revenue stream. So as we look ahead, we're keeping an open mind about what the appropriate mix of HPC and mining might be, and we'll certainly firm up our opinion in this regard as we further our conversations with Bee and as more data becomes available.

Speaker Change: As noted Argo continues to evaluate strategic opportunities and end market conditions, and we are open minded and committed to exploring all options.

Speaker Change: We see significant potential in high performance computing as the demand for computational power.

Speaker Change: To grow and we see it as an opportunity to diversify our revenue streams. So as we look ahead.

Speaker Change: We're keeping an open mind about what the appropriate mix of H B C and mining might be and we will certainly firm up our opinion in this regard as we further our conversations with B and as more data becomes available.

Jim MacCallum: Thank you, Thomas. The next question also pre-submitted and directed to Jim. Is Argo considering the possibility of raising capital in the future? And how would such a move impact your hold? Thanks, Marcella. Yeah, raising capital, whether through debt or equity is always a strategic decision aimed at driving sustainable growth. While issuing new shares can result in dilution, it's important to consider the long term values such funding can deliver. Many of our peers in the industry have successfully raised capital to expand operations, enhance infrastructure and enter high growth markets like HPC and AI.

[Financial Communications Representative] (Argo Blockchain): Thank you, Thomas. The next question also pre-submitted and directed to Charlotte Proctor-Worrall. Is Argo considering the possibility of raising capital in the future? How would such a move impact shareholders?

Thank you Thomas the next question also pre submitted and direct it to Jim.

Argo, considering the possibility of raising capital in the future and how such a move in Petcare holders.

Charlotte Proctor-Worrall: Thanks, Markella. Yeah. Raising capital, whether through debt or equity, is always a strategic decision aimed at driving sustainable growth. While issuing new shares can result in dilution, it is important to consider the long-term value such funding can deliver. Many of our peers in the industry have successfully raised capital to expand operations, enhance infrastructure, and enter high-growth markets like HPC and AI. Similarly, any capital we raise in the future would be carefully targeted to accelerate growth and ensure Argo remains competitive. By balancing short-term impacts with long-term opportunities, we aim to create sustainable value for our shareholders.

Speaker Change: Thanks Michaela.

Speaker Change: Raising capital whether through debt or equity, it's always a strategic decision aimed at driving sustainable growth.

Or issuing new shares can result in dilution, it's important to consider the long term value such funding can deliver.

Speaker Change: Many of our peers in the industry and successfully raise capital to expand operations enhance infrastructure and enter high growth markets like HBC NII.

Jim MacCallum: Similarly, any capital we raise in the future would be carefully targeted to accelerate growth and ensure Argo remains competitive by balancing short-term impacts with long-term opportunities, we aim to create sustainable value for our shareholders.

Speaker Change: Similarly, any capital we raised in the future would be carefully targeted to accelerate growth and ensure our goal remains competitive by balancing short term impacts with long term opportunities, we aim to create sustainable value for our shareholders.

Jim MacCallum: Thank you, Jim.

[Financial Communications Representative] (Argo Blockchain): Thank you, Charlotte. I believe we have time for one more question, which is also one of the pre-submitted ones and directed to Thomas. How is Argo approaching the evolving regulatory landscape for Bitcoin mining in the US, particularly in light of the recent political changes?

Speaker Change: Thank you Jim I believe we have time for one more question, which is also one of the pre submitted once and direct it to Thomas <unk>.

Thomas Chippas: I believe we have time for one more question, which is also one of the pre-submitted ones and directed to Thomas. How is Argo approaching the evolving regulatory landscape for Bitcoin mining in the US, particularly in light of the recent political changes?

Speaker Change: Argo approaching the evolving regulatory landscape for bitcoin mining in the U S, particularly in light of the recent political changes.

Thomas Chippas: Thanks Marcella. The political landscape surrounding Bitcoin mining remains complex, but the recent post election, post US election environment has certainly brought renewed optimism. We can see that with the Bitcoin having hit some record price highs. The incoming administration is anticipated to be crypto friendly and that could foster a more stable regulatory environment which would with Argo and the broader industry. It's kind of early to predict specific regulatory changes, and there's no lack of proposals that have been floating around, but we're closely monitoring those. Developments. Ultimately, we believe Bitcoin mining with this capacity to support grid stability and renewable energy projects will continue to present significant opportunities and appeal.

Thomas Chippas: Thanks, Markella. The political landscape surrounding Bitcoin mining remains complex. The recent post-US election environment has certainly brought renewed optimism. We can see that with Bitcoin having hit some record price highs. The incoming administration is anticipated to be crypto-friendly. That could foster a more stable regulatory environment, which would benefit both Argo and the broader industry. It's kind of early to predict specific regulatory changes. There's no lack of proposals that have been floating around. We're closely monitoring those developments. Ultimately, we believe Bitcoin mining with its capacity to support grid stability and renewable energy projects will continue to present significant opportunities and appeal. The potential addition of HPC to our portfolio further diversifies our revenue streams, giving us flexibility under whatever political or regulatory shifts may come in the future.

Thomas Cheapest: Thanks Michaela.

Speaker Change: The political landscape surrounding bitcoin mining remains complex, but the recent.

Speaker Change: The post election, and post U S election environment has certainly brought renewed optimism.

Speaker Change: We can see that with bitcoin has hit some record price highs.

The incoming administration is anticipated to be crypto friendly.

Speaker Change: And that could foster a more stable regulatory environment.

Speaker Change: Wood.

Speaker Change: With Argo and the broader industry, it's kind of early to predict specific regulatory changes and there's no lack of proposals that have been floating around but we're closely monitoring those.

Speaker Change: <unk>.

Speaker Change: Ultimately, we believe bitcoin mining with this capacity to support grid stability and renewable energy projects will continue to present significant opportunities and appeal. The potential addition of H P. C. It's our portfolio further diversifies our revenue streams.

Thomas Chippas: The potential addition of HPC to our portfolio further diversifies our revenue streams, giving us flexibility under whatever political or regulatory shifts may come in the future.

Speaker Change: Giving us flexibility under whatever political or regulatory shifts may may come in the future.

Markella: And I think Marcelli said that was the last question, so I'll just take a moment and say thank you for everyone who submitted questions today. We appreciate it. That's great. Thank you, Thomas, Markella and Jim, for updating investors.

Thomas Chippas: I think, Markella, that was the last question, so I'll just take a moment and say thank you for everyone who submitted questions today. We appreciate it.

Speaker Change: And I think most of that was the last question. So I'll just take a moment to say thank you for everyone who submitted questions today, we appreciate it.

Yeah.

Operator: That's great. Thank you, Thomas, Markella, and Charlotte Proctor-Worrall, for updating investors. Could I please ask investors therefore now to close the session, as we'll now automatically redirect you for the opportunity to provide your feedback in order that the company can better understand your views and expectations. This may take a few moments to complete. I'm sure will be greatly valued by the company. On behalf of the management team of Argo Blockchain plc, we'd like to thank you for attending today's presentation and wish you all a good rest of your day.

Speaker Change: That's great. Thank you Thomas Mark Heller and Jim for updating investors.

Markella: Could I please ask investors, therefore, not to close this session, as we'll now automatically redirect you for the opportunity to provide your feedback in order the company can better understand your views and expectations. It's going to take a few moments to complete, but I'm sure it'll be greatly valued by the company.

Speaker Change: Please ask investors therefore, not to close the sessions will now automatically redirect you for the opportunity to provide your feedback in the company can better understand your views expectations. So they take a few minutes to complete the I'm sure will be greatly valued by the company on behalf of the management team of Algo blockchain, you'll see we'd like to thank you for attending today's presentation and wish you all a good rest of your day.

Markella: On behalf of the management team of Argo Blockchain PLC, we'd like to thank you for attending today's presentation and wish you all a good rest.