Argo Blockchain PLC (ARBK) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the Argo Blockchain PLC Q1 update. (Operator Instructions) Before we begin, I would submit the following poll. I'd now like to hand over to [Marcella Ruffi], Argo's Financial Communications Representative. Good afternoon.

下午好，歡迎來到 Argo Blockchain PLC 第一季更新。（操作員說明）在我們開始之前，我將提交以下民意調查。現在我想將工作交給 Argo 的金融傳播代表 [Marcella Ruffi]。午安.

Thank you, Paul. Before we begin, I'd 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 risk disclosure.

謝謝你，保羅。在開始之前，我想提醒大家，今天的演講和言論可能包含前瞻性陳述。請參閱我們向美國證券交易委員會提交的 20-F 表，以了解我們的風險揭露。

\With us today for our discussion of Q1 2024 results are Thomas Chippas, Argo's Chief Executive Officer, and Jim MacCallum, Argo's Chief Financial Officer. And now I'll turn the call over to Thomas for some introductory remarks.

今天與我們一起討論 2024 年第一季業績的是 Argo 執行長 Thomas Chippas 和 Argo 財務長 Jim MacCallum。現在我將把電話轉給托馬斯，讓他做一些介紹性發言。

Thank you, Marcella, and thank you to everyone for joining us today. We recently shared our 2023 full year results, and I'm excited to update you on our progress since then for this quarter. As everyone's aware, the fourth Bitcoin halving occurred just over a month ago and Argo exited halving with a stronger balance sheet and leaner operation.

謝謝你，瑪塞拉，也謝謝大家今天加入我們。我們最近分享了 2023 年全年業績，我很高興向您介紹自此以來我們在本季度取得的最新進展。眾所周知，第四次比特幣減半發生在一個多月前，Argo 以更強勁的資產負債表和更精簡的營運退出減半。

As seen here, financial discipline, including deleveraging, operational excellence, and certainly growth and strategic partnerships are our three priorities, and they guide us on a daily basis for the sustainable future of Argo. By concentrating on these goals we're optimistic about the ongoing growth and development opportunities for Argo, and we have a clear objective of delivering shareholder value. So I'm certainly excited to continue with the great work the team is doing and tell you more about what we've been up to.

從這裡可以看出，財務紀律，包括去槓桿化、卓越運營，當然還有成長和策略合作夥伴關係，是我們的三個優先事項，它們每天都在指導我們實現 Argo 的可持續未來。透過專注於這些目標，我們對 Argo 的持續成長和發展機會感到樂觀，並且我們有一個明確的目標，即提供股東價值。因此，我當然很高興能夠繼續團隊正在進行的出色工作，並向您詳細介紹我們所做的事情。

A few comments, first, on the macro front. With the 2024 halving complete, the block subsidy that miners collect now stands at [3.8] Bitcoin down from [6.25]. The launch of spot ETFs for Bitcoin were certainly big drivers of price from $40,000 to $75,000. But after the halving, ETF holders began selling and it actually resulted in about seven days of net outflows of reversal of day after day of net inflows for those ETFs.

首先，關於宏觀的一些評論。隨著 2024 年減半完成，礦工獲得的區塊補貼目前為 [3.8] 個比特幣，低於[6.25]。比特幣現貨 ETF 的推出無疑是比特幣價格從 40,000 美元升至 75,000 美元的重要推動因素。但減半後，ETF持有者開始拋售，實際上導致了大約7天的淨流出，扭轉了這些ETF日復一日的淨流入。

Although, initially there was a spike in transaction fees post halving, it was short-lived and fees declined in the subsequent weeks. Rooms, one of the drivers of fees, the initial period post halving are now generating far lower fees than regular transactions compared to the weeks succeeding the halving. As a result, fees today have dropped below the first quarter's average of [64 spot 39] Bitcoin and hash price is coming down from it's post halving rooms driven high.

儘管最初減半後交易費用出現飆升，但這種情況是短暫的，費用在接下來的幾週內有所下降。客房是費用的驅動因素之一，與減半後的幾週相比，減半後的初始階段產生的費用遠低於常規交易。結果，今天的費用已降至第一季 [64 現貨 39] 比特幣的平均水平以下，哈希價格也從減半後的高點回落。

Concurrently the network hash rate an all-time high of 654 exahash before the halving, but dropped to 580 exahash over the following three weeks. This reduction can be attributed to miners adjusting efficiency settings in their machines and some shutting down temporarily. This might appear significant, but such a decline is not out of the ordinary, and this happened on two occasions previously this year.

同時，網路哈希率在減半前達到歷史最高值 654 exahash，但在接下來的三週內降至 580 exahash。這種下降可歸因於礦工調整機器的效率設定以及一些礦工暫時關閉。這可能看起來很重要，但這種下降並不罕見，今年之前曾發生過兩次。

Going forward, the hash rate is likely to oscillate as hash price changes. However, for the near term, due to highly compressed mining margins and the upcoming summer months here in the US, hash rate growth will likely be restrained.

展望未來，哈希率可能會隨著哈希價格的變化而波動。然而，短期內，由於挖礦利潤高度壓縮以及美國即將到來的夏季，算力成長可能會受到限制。

And then just looking beyond Bitcoin for a moment, for the long term, the head of the US Federal Reserve has suggested that the Central Bank might have hit its peak rate cycle height, which is promising for Bitcoin mining because it suggests a more favorable environment with potential for increasing Bitcoin prices.

然後，除了比特幣之外，從長遠來看，聯準會主席表示，央行可能已經達到利率週期峰值，這對比特幣挖礦來說是有希望的，因為它表明了一個更有利的環境具有增加比特幣價格的潛力。

So with that we can talk a little bit about our 2024 results. So we generated approximately $17 million of revenue in Q1, which was an increase of 4% from the last quarter of 2023, really due to elevated hash price. At the end of the first quarter, our cash on hand stood at $12.4 million, which is an increase from the $7.4 million at the end of 2023. As mentioned previously, we had some significant balance sheet events occurring in Q1 2024, including an equity raise of nearly $10 million in January and the sale of our Mirabel facility in Québec in March. The proceeds were used to repay the facility's existing mortgage and pay down some of the debt owed to Galaxy.

這樣我們就可以談談 2024 年的結果了。因此，我們在第一季產生了約 1700 萬美元的收入，比 2023 年最後一個季度增長了 4%，這實際上是由於哈希價格上漲。截至第一季末，我們手頭現金為 1,240 萬美元，較 2023 年底的 740 萬美元有所增加。如前所述，我們在 2024 年第一季發生了一些重大的資產負債表事件，包括 1 月近 1,000 萬美元的股權融資以及 3 月出售魁北克米拉貝爾工廠。所得款項用於償還該機構現有的抵押貸款並償還欠銀河的部分債務。

So let's move on to the next slide. We can talk a little bit more about debt reduction in further detail. So as discussed on the previous call, debt reduction has been a focus for us since we sold Helios and restructured our debt at the end of 2022. As noted, we executed two significant transactions in the first quarter of '24, bolstering our cash position in addition to reducing our debt, that being the equity raise in the Mirabel sale.

讓我們繼續看下一張投影片。我們可以更詳細地討論一下債務削減。因此，正如上次電話會議中所討論的那樣，自從我們在 2022 年底出售 Helios 並重組債務以來，減少債務一直是我們的重點。如前所述，我們在 2024 年第一季執行了兩筆重大交易，除了減少債務外，還增強了我們的現金狀況，即米拉貝爾出售中的股權融資。

The Mirabel sale was a great transaction for a number of reasons. First, we realized an attractive exit on the asset with the $6.1 million sale price. And secondly, consolidating our Québec fleet to Baie Comeau allowed us to streamline operations with minimal impact to revenue. We were able to execute the move quickly, and we realized an annualized reduction in OpEx of about $700,000 per annum.

出於多種原因，米拉貝爾的出售是一筆偉大的交易。首先，我們以 610 萬美元的售價實現了對該資產的有吸引力的退出。其次，將我們的魁北克機隊整合到拜科莫使我們能夠簡化運營，同時對收入的影響最小。我們能夠快速執行這項舉措，並且我們實現了每年約 70 萬美元的營運支出減少。

Now let me turn it over to Jim for a deeper dive into Q1 financial results. Over to you, Jim.

現在讓我把它交給吉姆，讓他更深入地了解第一季的財務表現。交給你了，吉姆。

Thank you, Tom. During the first quarter, we mined 319 Bitcoin. And our mining margin percentage for the quarter was 38%, which is an increase from the 34% achieved in Q4 2023. We generated revenue of $16.8 million and $0.6 million in power credits from economic curtailment in Texas. As mentioned, this curtailment helped us to achieve a mining margin of 38% this quarter with an average direct cost per Bitcoin mined of approximately $32,000. We raised $9.9 million of gross proceeds through an equity raise in January, of which we used a portion to pay down our Galaxy debt.

謝謝你，湯姆。第一季度，我們開採了 319 個比特幣。我們本季的挖礦利潤率為 38%，較 2023 年第四季的 34% 有所成長。我們從德州的經濟限制中獲得了 1,680 萬美元的收入和 60 萬美元的電力信貸。如前所述，這種削減幫助我們在本季實現了 38% 的採礦利潤，開採每個比特幣的平均直接成本約為 32,000 美元。我們透過 1 月的股權融資籌集了 990 萬美元的總收益，其中一部分用於償還 Galaxy 債務。

As Tom mentioned previously, we also sold our Mirabel facility in March for $6.1 million. The accounting gain net of tax for this transaction was $3 million. Our adjusted EBITDA has increased almost twofold over the last year and was $3.8 million during Q1 2024.

正如 Tom 之前提到的，我們也在 3 月以 610 萬美元的價格出售了米拉貝爾工廠。本次交易的扣除稅項的會計收益為 300 萬美元。我們的調整後 EBITDA 比去年增長了近兩倍，2024 年第一季達到 380 萬美元。

This slide shows our cash flow from December 31, 2023, to March 31, 2024. We continue to have a strong focus on cash flow generation and strengthening the balance sheet. In Q1, our cash flow from operations, including working capital changes, was $3.7 million. We use that for debt reduction. We paid $1.7 million of interest during the period. During the first quarter of 2024, we improved our cash position by $5 million to over $12 million, while simultaneously paying down our debt by over $12 million.

這張投影片顯示了我們從2023年12月31日到2024年3月31日的現金流。我們繼續專注於現金流的產生和加強資產負債表。第一季度，我們的營運現金流（包括營運資金變動）為 370 萬美元。我們用它來減少債務。在此期間我們支付了 170 萬美元的利息。2024 年第一季度，我們的現金部位增加了 500 萬美元，達到超過 1,200 萬美元，同時還清了超過 1,200 萬美元的債務。

With that, I'll turn it back over to Tom.

這樣，我會把它轉回給湯姆。

Thanks, Jim. So in the period since our last -- full year results, we have maintained our streamline operations in Québec through the consolidation of the fleet Baie Comeau post Mirabel as I mentioned. As part of the fleet consolidation, we did take the opportunity to decommission and sell some older generation machines, which reduced our total hash rate from 2.8 to 2.7 exahash. We still have the majority of our fleet, roughly 2.4 exahash of total hash rate capacity located at Helios in Texas.

謝謝，吉姆。因此，自去年全年業績以來，我們透過合併米拉貝爾後的拜科莫船隊，維持了魁北克的精簡運營，正如我所提到的。作為機群整合的一部分，我們確實藉此機會退役並出售了一些舊一代機器，這將我們的總哈希率從 2.8 exahash 降低到了 2.7 exahash。我們仍然擁有大部分機群，大約 2.4 exahash 的總算力容量位於德克薩斯州的 Helios。

Now as we think about growth in the sector is focused, on course, transitioning to clean energy, which has always been a focus for Argo and it requires investment in the power grid and certainly in demand response technology. As we've stated, as have others in the industry, we believe Bitcoin miners can play a very important role in that transition. Bitcoin miners are exceptionally agile and well suited for load balancing programs and -- but acting as a flexible load, Bitcoin miner can help balance the grid by spinning up and spinning down quickly when required. Argo is having discussions focused on ways to integrate our operational capabilities with those of energy companies. And we certainly look forward to updating everyone on those discussions in due course.

現在，當我們考慮該行業的成長時，當然，重點是向清潔能源過渡，這一直是 Argo 的重點，它需要對電網以及需求響應技術的投資。正如我們所說，與業內其他人一樣，我們相信比特幣礦工可以在這一轉變中發揮非常重要的作用。比特幣礦工非常敏捷，非常適合負載平衡程序，而且作為靈活的負載，比特幣礦工可以在需要時透過快速旋轉來幫助平衡電網。Argo 正在討論如何將我們的營運能力與能源公司的營運能力整合起來。我們當然期待在適當的時候向大家通報這些討論的最新情況。

So as we continue our mission of powering, innovative, sustainable blockchain infrastructure. These three pillars will continue to be our focus.

因此，我們將繼續履行為創新、可持續的區塊鏈基礎設施提供動力的使命。這三大支柱將繼續成為我們的重點。

With that back to more color for any questions. Thank you.

對於任何問題，回到更多顏色。謝謝。

Thank you. Thank you, everyone. First question from Kevin Dede from H.C. Wainwright.

謝謝。謝謝大家。第一個問題來自 H.C. 的 Kevin Dede溫賴特。

And it's directed to Thomas. Can you elaborate on the Galaxy relationship, their plan for the Kenya site and how you expect mining to progress through the hot summer months, including the potential for curtailings. Additionally, are they given the opportunity to overclock? And if so as have you taken advantage of it?

它是針對托馬斯的。您能否詳細介紹一下 Galaxy 的關係、他們對肯亞站點的計劃以及您預計採礦業在炎熱的夏季將如何進展，包括減產的可能性。此外，他們有機會超頻嗎？如果是的話，你利用了它嗎？

Thanks for your question, Kevin. So a compelling aspect of our operations at Helios is, of course, the facility's ability to curtail during periods of high power prices. For most of 2023, we procured electricity through fixed price power purchase agreements, which ensured a stable cost of power. However, when market prices are high, of course, we can curtail or shut down operations and sell electricity back on the open market, a process known as economic curtailment. And as we discussed in the previous call, it generated about $7.2 million in power credits directly reducing our cost of mining.

謝謝你的提問，凱文。因此，我們 Helios 運營的一個引人注目的方面當然是該設施在高電價期間削減電力的能力。2023年大部分時間，我們透過固定電價購電協議採購電力，確保了電力成本的穩定。然而，當市場價格較高時，我們當然可以減少或關閉運營，並在公開市場上將電力賣回，這個過程稱為經濟限電。正如我們在之前的電話會議中所討論的那樣，它產生了約 720 萬美元的電力信用，直接降低了我們的採礦成本。

The curtailment helped us achieve a mining margin of about 38% this quarter with an average direct cost per Bitcoin mined of about $31,000. During the hot summer months, we expect to continue practicing economic curtailment when necessary. Additionally, we do have the opportunity to overclock our rigs to optimize performance and will do so when conditions are favorable. So thank you for that, Kevin.

此次削減幫助我們本季實現了約 38% 的挖礦利潤，每個比特幣的平均直接成本約為 31,000 美元。在炎熱的夏季，我們預計在必要時繼續實施限產政策。此外，我們確實有機會對我們的設備進行超頻以優化性能，並且在條件有利時會這樣做。謝謝你，凱文。

Thank you, Thomas. Next question was pre-submitted in the chat and it's directed to Jim. Will Argo invest into infrastructure again on only focus on machines?

謝謝你，托馬斯。下一個問題是在聊天中預先提交的，並且是針對吉姆的。Argo 會再次投資基礎設施而只專注於機器嗎？

Yeah, thanks for the question. Yes, currently, we have both hosted machines at Helios in Texas and owned machines that are Baie Comeau site in Québec, where we can also expand our capacity. As the market evolves, we think there will be opportunities in both the hosted space and doing our own investing in infrastructure, and we'll evaluate these decisions on a case-by-case basis. Thank you.

是的，謝謝你的提問。是的，目前，我們在德克薩斯州的 Helios 擁有託管機器，並且在魁北克省的 Baie Comeau 站點擁有自己的機器，我們也可以在那裡擴展我們的產能。隨著市場的發展，我們認為託管空間和我們自己的基礎設施投資都會有機會，我們將根據具體情況評估這些決策。謝謝。

Thank you, Jim. Next question was again pre-submitted and it's directed to Thomas. What can you say about the growth opportunities you are seeking out for Argo? Any details on the size, type, timing.

謝謝你，吉姆。下一個問題再次預先提交，並針對托馬斯。您對為 Argo 尋找的成長機會有何看法？有關尺寸、類型、時間的任何詳細資訊。

Thank you for that. So we cannot get into details right now. But given Argo's size and market position, we believe that the smaller sites with unique power cost and availability characteristics could fit well into our portfolio.

謝謝你。所以我們現在不能透露細節。但考慮到 Argo 的規模和市場地位，我們相信具有獨特電力成本和可用性特徵的較小站點可以很好地融入我們的投資組合。

Look, there are certainly many groups on the hunt for power resources right now, not just Bitcoin miners. But we think our size may be an advantage here as we flesh out opportunities. And certainly we'll have more to say when we can about those.

你看，現在肯定有很多團體在尋找電力資源，而不僅僅是比特幣礦工。但我們認為，當我們充實機會時，我們的規模可能是一個優勢。當然，如果可以的話，我們會對這些內容有更多的話要說。

Thank you, Thomas. Next question is from Kevin Dede at H.C. Wainwright once more and it's directed to Jim.

謝謝你，托馬斯。下一個問題來自 H.C. 的 Kevin Dede。溫賴特再次向吉姆求助。

How do you plan to return to growth while balancing debt obligations?

您計劃如何在平衡債務的同時恢復成長？

Hey, thanks, Kevin. Yeah, we've had a strong focus on costs over the past year and feel that heavy lifting has been successfully completed here. Our run rate, as we said for non-mining operating expenses has trended to approximately $1 million per month, and we believe that's a reasonable outlook for the balance of the year.

嘿，謝謝，凱文。是的，過去一年我們非常關注成本，並認為這裡已經成功完成了繁重的工作。正如我們所說的非採礦營運費用，我們的運行率已趨於每月約 100 萬美元，我們相信這對今年剩餘時間來說是一個合理的前景。

Our new vision centers on optimizing operational efficiency, strengthening the balance sheet, and reducing debt. We aim to leverage strategic partnerships and explore sustainable growth projects while maintaining our commitment to renewable energy sources. Given that we exited the Bitcoin halving with cash of just over $12 million and reduced our debt by over $12 million during the first quarter, Argo is in a strong position and the company is in a growth mindset now and will continue to focus on fiscal responsibility. Thank you.

我們的新願景集中在優化營運效率、強化資產負債表和減少債務。我們的目標是利用策略合作夥伴關係並探索永續成長項目，同時保持我們對再生能源的承諾。鑑於我們在第一季以略高於 1200 萬美元的現金退出比特幣減半，並減少了超過 1200 萬美元的債務，Argo 處於有利地位，公司現在處於增長心態，並將繼續關注財務責任。謝謝。

Thank you. Our next question is pre-submitted and it's directed to Jim. Can you speak to power prices for the second quarter?

謝謝。我們的下一個問題是預先提交的，是針對吉姆的。能談談第二季的電價嗎？

Yeah. I mean, we can't go into too much detail here. But power prices during the second quarter, which include obviously the early part of the summer, are subject to significant volatility, which we certainly saw last year. This period often sees heightened uncertainty due to the potential for heat waves, which can drive up demand and consequently prices. To navigate these fluctuations, we have to remain agile and capitalize on any economic curtailment programs that may arise.

是的。我的意思是，我們不能在這裡討論太多細節。但第二季的電價（顯然包括夏初）會大幅波動，我們去年確實看到了這一點。由於熱浪的可能性，這段時期的不確定性往往會增加，從而推高需求並進而推高價格。為了應對這些波動，我們必須保持敏捷並利用可能出現的任何經濟削減計劃。

We can give some color. April was clearly a strong month for Bitcoin economics. For May, despite the Bitcoin halving through lower power prices and optimization of our fleet's efficiency settings, we have seen mining margins in the 30% range, albeit on the lower revenue resulting from the halving. We will closely monitor market trends and price movements. And this proactive approach will enable us to adjust our strategies in real time and optimize our mining profitability while mitigating the risks of hash price and energy cost volatility. Thank you.

我們可以給一些顏色。四月顯然是比特幣經濟強勁的月份。5 月份，儘管透過降低電價和優化我們的機隊效率設置，比特幣減半，但我們看到挖礦利潤在 30% 範圍內，儘管減半導致收入下降。我們將密切關注市場趨勢和價格趨勢。這種積極主動的方法將使我們能夠即時調整策略並優化挖礦獲利能力，同時降低哈希價格和能源成本波動的風險。謝謝。

Thank you, Jim. Next question submitted in the chat directed to Thomas. Does Argo have any plans to branch into AI data centers?

謝謝你，吉姆。聊天中提交的下一個問題是針對托馬斯的。Argo有計劃進軍人工智慧資料中心嗎？

Thank you for that. With respect to AI and HPC, this is certainly a very topical area amongst miners. We understand the demand for HPC processing in the market, but I think it's a different business than operating a Bitcoin mining facility. We have explored the possibility and we're certainly not ruling it out for the future. However, our current strategy remains centered on Bitcoin mining operations. Thank you.

謝謝你。就人工智慧和高效能運算而言，這無疑是礦工中非常熱門的領域。我們了解市場對 HPC 處理的需求，但我認為這與經營比特幣挖礦設施是不同的業務。我們已經探索了這種可能性，當然不會在未來排除這種可能性。然而，我們目前的策略仍然以比特幣挖礦業務為中心。謝謝。

Thank you, Thomas. Next question was submitted by Bill Papanastasiou at Stifel, and it's directed to Thomas. We have to mining economics weak in following the halving event. How is management approaching the capital allocation strategy of balancing expense management with growing upgrading the fleet? Is there any near term path of the shift towards the growth in the future?

謝謝你，托馬斯。下一個問題是由 Stifel 的 Bill Papanastasiou 提交給 Thomas 的。我們必須挖掘減半事件後經濟疲軟的情況。管理階層如何制定平衡費用管理與不斷升級機隊的資本分配策略？未來是否有任何轉向成長的近期路徑？

Thanks for that, Bill. So Argo's fleet operate flexibly, which allows us to adjust power consumption through over under clocking like a dimmer switch, allows you to control the brightness of a light. And I think Jim referenced that in his comments about Q2 power.

謝謝你，比爾。所以Argo的機群運作靈活，這使得我們可以像調光開關一樣透過超頻、降頻來調整功耗，讓你可以控制燈光的亮度。我認為吉姆在他關於第二季度功率的評論中提到了這一點。

In the current market, recognizing the weaker mining economics, this adaptability is essential. So we fully appreciate the capabilities of newer generation machines and the efficiency they bring. Our growth strategy, when it comes to fleet will always consider hash price, rig availability, and energy cost amongst other factors.

在當前市場中，鑑於採礦經濟疲軟，這種適應性至關重要。因此，我們充分認識到新一代機器的功能及其帶來的效率。當談到機隊時，我們的成長策略將始終考慮哈希價格、鑽孔機可用性和能源成本等因素。

As I said, we're shifting back to a growth mindset. We want to leverage our size to target sites that may be less appealing to larger miners and explore what opportunities we can there. We'll find the right fleet for those opportunities when they present themselves. Our capital allocation strategy is going to balance expense management with fleet upgrades and ensure that we can remain competitive and ready for future opportunities as they arise in the industry. Thanks, Bill.

正如我所說，我們正在回歸成長型思維。我們希望利用我們的規模來瞄準那些對大型礦商可能不太有吸引力的地點，並探索我們在那裡可以找到哪些機會。當這些機會出現時，我們將找到合適的機隊。我們的資本配置策略將平衡費用管理與機隊升級，並確保我們能夠保持競爭力並為產業中出現的未來機會做好準備。謝謝，比爾。

Thank you, Thomas. Next question is also pre-submitted and directed to Jim. How does Argo plan to manage its debt and what are the prospects for refinancing?

謝謝你，托馬斯。下一個問題也是預先提交給吉姆的。Argo 計劃如何管理債務以及再融資的前景如何？

Yeah. Thanks for the question. Yeah, we're pleased with how we've managed our Galaxy debt. Over the past year, we've paid it down. It started at $35 million, we paid down $23 million or approximately two-thirds of the total balance over the last 12 months. At March 31, we reported cash of over $12 million and our Galaxy debt has been substantially reduced to $12.8 million. We exited the halving in a strong fiscal position and continue to focus on paying down this debt and strengthening the balance sheet. Thank you.

是的。謝謝你的提問。是的，我們對銀河債務的管理方式感到滿意。過去的一年，我們已經還清了。起價為 3500 萬美元，我們在過去 12 個月內支付了 2300 萬美元，約佔總餘額的三分之二。截至 3 月 31 日，我們報告的現金超過 1,200 萬美元，我們的 Galaxy 債務已大幅減少至 1,280 萬美元。我們以強勁的財政狀況退出了減半，並繼續專注於償還債務和加強資產負債表。謝謝。

Thank you. Jim. Another pre-submitted question for Thomas this time. What are your plans for increasing efficiency and reducing the recent downtime at several Bitcoin mining facilities?

謝謝。吉姆.這次又是托馬斯預先提交的問題。您有什麼計劃來提高幾個比特幣採礦設施的效率並減少最近的停機時間？

Thank you for that question. So with the relocation to Baie Comeau, as I noted, we consolidated our infrastructure. And as discussed on the previous quarter's call, the downtime was minimal and had minimal impact to revenue. In response to downtime that we saw in February, we also noted on the previous call, there were some maintenance upstream by power providers that was beyond our control.

謝謝你提出這個問題。正如我所指出的，隨著搬遷到拜科莫，我們鞏固了我們的基礎設施。正如上一季電話會議中所討論的那樣，停機時間很短，對收入的影響很小。針對我們在 2 月看到的停機情況，我們在先前的電話會議中也指出，電力供應商對上游進行了一些維護，這是我們無法控制的。

I think when you look at our operations team is doing a very good job of maintaining uptime across the fleet and they continually work to improve operational efficiency and you can observe that when looking at the 5% increase in daily Bitcoin production in March '24 compared to February '24. So we'll continue to look for ways to enhance efficiency and reduce our susceptibility to downtime events on an ongoing basis. Thank you.

我認為，當你看到我們的營運團隊在維持整個車隊的正常運行時間方面做得非常好，他們不斷努力提高營運效率時，你可以觀察到，與24 年3 月相比，每日比特幣產量增加了5%到 24 年 2 月。因此，我們將繼續尋找提高效率並持續降低對停機事件的敏感度的方法。謝謝。

Thank you, Thomas. Another pre-submitted question directed to Thomas once more. Can you give an update on where hash rate currently stands across all facilities. Additionally, assuming hash prices normalize post halving, what strategies can you implement to lower your direct and all-in costs for BTC mine to mitigate losses?

謝謝你，托馬斯。另一個預先提交的問題再次針對托馬斯。您能否提供有關所有設施的哈希率當前情況的最新資訊。此外，假設哈希價格在減半後正常化，您可以採取哪些策略來降低 BTC 礦場的直接成本和總成本，從而減輕損失？

Thank you for that. So our hash rate capacity at Baie Comeau was about 300 petahash, and that's the ePIC BlockMiner and the efficiency on the nameplate for those machines is anywhere from 30 to 35 joules per terahash. At Helios, where we have about 2.4 exahash for running the S19J Pros and the nameplate efficiency is about the same in the 30 to 35 range. So to lower our direct an all-in cost per Bitcoin mine, we're going to continue to optimize the fleet for operational efficiency and leverage economic curtailment during high power prices.

謝謝你。因此，我們 Baie Comeau 的哈希率容量約為 300 petahash，這就是 ePIC BlockMiner，這些機器銘牌上的效率為每 terahash 30 到 35 焦耳。在 Helios 上，我們有大約 2.4 exahash 來運行 S19J Pros，銘牌效率在 30 到 35 範圍內大致相同。因此，為了降低每個比特幣礦場的直接總成本，我們將繼續優化礦場以提高營運效率，並在高電價期間利用經濟限制。

I think going forward, we're open-minded about strategic opportunities for equipment acquisition and site acquisition, [and what have you], and we'll continue to focus in the interim while maintaining cost-effective operations to ensure that we're getting the best out of the fleet that we can. Thank you.

我認為，展望未來，我們對設備採購和場地收購的戰略機會持開放態度，[以及您擁有的]，我們將在過渡期間繼續關注，同時保持具有成本效益的運營，以確保我們盡我們所能充分利用機隊。謝謝。

Thomas, I think we have time for one las question so with this let's wrap that up. Last question, pre-submitted directed to Jim. What was the thought process around selling the Mirabel facility.

湯瑪斯，我想我們有時間回答一個問題，所以讓我們結束這個問題。最後一個問題是預先提交給吉姆的。出售米拉貝爾工廠的思考過程是怎麼樣的？

Yeah. So there were clearly a number of factors that went into the sales decisions. Firstly, we were very happy with the price. We think the sale price of$6.1 million, which equates to approximately $1.2 million per megawatt for that site was significantly more than what it would cost to develop a facility in North America. So we're pleased with the price first of all.

是的。因此，顯然有許多因素影響了銷售決策。首先，我們對價格非常滿意。我們認為該場地的售價為 610 萬美元，相當於每兆瓦約 120 萬美元，遠高於在北美開發設施的成本。所以我們先對價格感到滿意。

Secondly, the sale provided an opportunity, as Tom mentioned, to consolidate our operations into the Baie Comeau facility. So going from two facilities in Québec to one, allowing us to reduce our overhead and operational expenses contributing to greater overall efficiency for Argo.

其次，正如湯姆所提到的，此次出售提供了一個將我們的業務整合到拜科莫工廠的機會。因此，從魁北克的兩個設施減少到一個，使我們能夠減少管理費用和營運費用，從而提高 Argo 的整體效率。

And then lastly, the consolidation, as we've mentioned has had minimal impact on our overall hash rate and revenue generation from relocating the machines. We were able to maintain our hash rate capacity while at the same time streamlining our Québec operations, which allows us to focus the resources and management efforts more effectively.

最後，正如我們所提到的，整合對我們的整體哈希率和重新安置機器產生的收入影響很小。我們能夠保持我們的算力能力，同時簡化我們在魁北克的運營，這使我們能夠更有效地集中資源和管理工作。

And additionally, the net proceeds from the sale, strengthen our financial position, support our growth initiatives, and reduces our interest expense going forward, which is important. So these were the primary factors in deciding to sell the Mirabel facility. Thank you.

此外，出售的淨收益可以增強我們的財務狀況，支持我們的成長計劃，並減少我們未來的利息支出，這一點很重要。因此，這些是決定出售米拉貝爾工廠的主要因素。謝謝。

Okay. Well, thank you, everyone, for joining us today. It goes without saying that it's certainly an exciting time in the mining space and we think an exciting time for Argo. We look forward to speaking with everyone again in a few weeks at our Annual General Meeting on June 6. Thank you very much for your time.

好的。好的，謝謝大家今天加入我們。不言而喻，這無疑是採礦領域的一個令人興奮的時刻，我們認為對 Argo 來說也是一個令人興奮的時刻。我們期待幾週後在 6 月 6 日的年度股東大會上再次與大家交談。非常感謝您的寶貴時間。

Fantastic. Thank you very much indeed for updating investors today. I please ask investors not to close the session. You now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. This may take a few months to complete, but maybe greatly valued by the company.

極好的。非常感謝您今天向投資者通報最新情況。我請投資者不要閉會。現在，您會被自動重新導向以提供回饋，以便管理團隊可以更好地了解您的觀點和期望。這可能需要幾個月的時間才能完成，但可能會受到公司的高度重視。

On behalf of the management team of Argo Blockchain PLC, we'd like to thank you for attending today's presentation. That concludes today's session and good afternoon to you all.

我們謹代表 Argo Blockchain PLC 的管理團隊感謝您參加今天的演講。今天的會議到此結束，大家下午好。