Argo Blockchain PLC (ARBK) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Argo Blockchain PLC Q3 results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. (Operator Instructions)

下午好，女士們先生們，歡迎來到 Argo Blockchain PLC 第三季業績投資者演示會。在整個錄製的簡報中，投資者將處於僅聽模式。（操作員說明）

And I'd like to hand over to Marcela, Financial Communications Representative of Argo Blockchain.

我想請 Argo Blockchain 的金融傳播代表 Marcela 發言。

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. 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. \

謝謝你，馬克。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，以了解我們的完整風險揭露。今天與我們一起討論 2024 年第三季業績的是 Argo 執行長 Thomas Chippas；以及 Argo 財務長 Jim MacCallum。\

And now, I'll turn it over to Thomas for some introductory remarks.

現在，我將把它交給托馬斯做一些介紹性演講。

Thank you, Marcela 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 partnerships.

謝謝馬塞拉，也謝謝大家今天加入我們，我們將討論本季和今年迄今的進展。Argo 仍然專注於我們的三個關鍵支柱：財務紀律、卓越營運和透過策略合作夥伴關係實現成長。

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

透過保持這一重點，我們正在穩步定位公司，以抓住新的成長和發展機遇，以及我們將討論的一些行業阻力。我們致力於創造長期股東價值，並繼續在債務償還和成長方面採取積極措施。

First a few comments on the macro 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 strain mining profit margins sector wide.

首先對宏觀環境進行一些評論。2024 年第三季度，宏觀經濟環境影響了比特幣挖礦業，整個產業（包括 Argo）都感受到了第三季的挑戰。該行業繼續努力應對 2024 年 4 月區塊獎勵減半的持久影響。大宗發行收入的下降給整個產業的礦業利潤率帶來壓力。

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 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.

Argo 在減半後的環境中表現出了韌性，由於挖礦難度和哈希價格波動，生產一個比特幣的平均成本有所增加。第三季礦商面臨的主要挑戰是，隨著挖礦難度的上升和哈希價格的下降，生產成本不斷增加。該網絡的每日獲利能力下降至減半前水準的 50% 左右。

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 points, the first touch reduction since the central bank began increasing rates in an effort to attain decades high inflation following the global pandemic.

在其他地方，比特幣網路難度指標在 9 月達到了歷史最高水準。第三季的貨幣政策也在塑造該產業的發展軌跡方面發揮了作用。9月，聯準會四年來首次降息50個基點，這是自全球大流行後央行開始升息以努力實現數十年高通膨以來的首次降息。

The policy interest rate hikes previously provided a reprieve to risk assets like Bitcoin and recent moves increase the attractiveness of alternative investments like Bitcoin. This shift in policy has likewise created a more stable environment for miners as borrowing costs for infrastructure expansion and energy pricing become less volatile.

先前政策升息為比特幣等風險資產提供了喘息之機，而最近的舉措則增加了比特幣等另類投資的吸引力。隨著基礎設施擴張的借貸成本和能源定價的波動性降低，這項政策轉變也為礦商創造了更穩定的環境。

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 ETF's Q1 rally did not repeat in Q3 despite this ETF purchases rebounded at the beginning of the quarter.

儘管某些地區的通膨壓力有所緩解，但它們仍然是一個重大問題。比特幣礦商被迫調整策略，以在成本波動的情況下維持獲利能力。在其他地方，儘管美國現貨比特幣 ETF 購買量在本季初出現反彈，但美國現貨比特幣 ETF 第一季反彈的高峰並未在第三季重演。

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 and of course in the days and weeks post the US elections, we have seen strong demand for Bitcoin and ETFs.

7 月份，ETF 的 BTC 淨流入總量從 25 萬個比特幣飆升至 30 萬個比特幣。在跌破 30 萬大關後，9 月下旬也出現了需求強勁，當然在美國大選後的幾天和幾週內，我們看到了對比特幣和 ETF 的強勁需求。

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 of key future theme is set to be innovation and diversification.

最近的政治發展引發了人們對更有利的監管變化的預期，這可能會進一步支持該行業，儘管能源市場波動和採礦困難，但影響該行業進入第四季度關鍵未來主題軌蹟的剩餘關鍵因素將是創新和多元化。

Now let's turn to our highlights for the third quarter of 2024.

現在讓我們回顧一下 2024 年第三季的亮點。

In Q3, we mined 123 Bitcoin or approximately 1.3 Bitcoin per day and generated $7.5 million in revenue. For the nine 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 costs.

第三季度，我們開採了 123 個比特幣，每天約 1.3 個比特幣，創造了 750 萬美元的收入。截至 9 月 30 日的九個月，我們創造了 3,670 萬美元的收入。我們本季的挖礦利潤率為 8%，而去年同期為 58%，反映了比特幣價格下跌和能源成本上漲的影響。

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 $6.3 million for the quarter and $39.2 million for the nine months ended September 30, 2024.

截至 2024 年 9 月 30 日的九個月，採礦利潤率為 33%，去年同期為 47%。上一年受惠於經濟限制帶來的大量電力信貸。我們報告本季淨虧損 630 萬美元，截至 2024 年 9 月 30 日的九個月淨虧損 3,920 萬美元。

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 respectively in the prior year periods. During the quarter, we reduced our debt by $12.4 million including the full repayment of the Galaxy loan, further deleveraging our balance sheet.

第三季調整後 EBITDA 為負 210 萬美元，前九個月為正 390 萬美元，去年同期分別為正 240 萬美元和 520 萬美元。本季度，我們減少了 1,240 萬美元的債務，包括全額償還 Galaxy 貸款，進一步降低了我們資產負債表的槓桿率。

We ended the quarter with $2.5 million in cash and four Bitcoin equivalents held. Post-quarter on the October 11, 2024, we were pleased to announce the dismissal of the class action lawsuit, Murphy versus Argo Blockchain, which was dismissed with prejudice and without leave to amend.

本季結束時，我們持有 250 萬美元現金和 4 個比特幣等價物。2024 年 10 月 11 日季後，我們很高興地宣布駁回 Murphy v. Argo Blockchain 的集體訴訟，該訴訟因偏見而被駁回，且未經許可進行修改。

We entered into a non-binding letter of intent with the BE 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.

我們與 BE 集團簽訂了一份不具約束力的意向書，探索 Baie-Comeau 的高效能運算擴展，並開始與我們的貸方討論 Baie-Comeau 抵押貸款設施的擴展。

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 a hosted fleet of 23,000 S19J Pro Miners, we are actively exploring alternative arrangements to maximize the value of these rigs.

最後，我們收到 Galaxy 的通知，他們將在 2024 年 12 月之後不再續簽 Helios 的託管協議。雖然這標誌著由 23,000 台 S19J Pro 礦機組成的託管車隊發生了變化，但我們正在積極探索替代安排，以最大限度地發揮這些礦機的價值。

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

現在讓我們轉到下一張投影片，吉姆將討論我們的季度業績和資本結構的比較。吉姆.

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.

謝謝你，湯姆。我們第三季的營收為 750 萬美元。與 2024 年第二季的 1,240 萬美元和 2023 年第三季的 1,040 萬美元相比有所下降。這一下降主要是由於本季比特幣產量下降和哈希價格下降所致。

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.

儘管面臨第三季的不利因素，我們截至 2024 年 9 月 30 日的九個月的收入仍達到 3,670 萬美元，較去年同期的 3,440 萬美元有所增長。我們第三季的挖礦利潤率為 8%，反映出具有挑戰性的哈希價格環境和更高的電力成本，導致每個比特幣礦場的成本更高。利潤率較第二季的 41% 有所下降。

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. As indicated in our October operational update RNS, we saw improved results in October and November is also strong.

我們的整體挖礦利潤從第二季的 510 萬美元下降至 60 萬美元。然而，我們對我們的營運策略仍然充滿信心，並繼續優化我們的機隊以實現最高效率。正如我們 10 月份營運更新 RNS 中所示，我們看到 10 月份的業績有所改善，11 月份的業績也很強勁。

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.

非採礦營運支出持續呈下降趨勢，反映出我們對成本控制和營運精簡的關注。非採礦營業費用總額較去年同期下降約12%。

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 million 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 Bitcoin.

正如 Tom 所提到的，本季調整後 EBITDA 為負 210 萬美元，而 2024 年第二季為 260 萬美元，反映了第三季採礦條件的挑戰。這九個月調整後的 EBITDA 為正 400 萬美元，而前一年為 520 萬美元。我們在本季全額償還了 1,240 萬美元的 Galaxy 貸款，本季末我們擁有 250 萬美元現金並持有 4 個比特幣。

Looking ahead, we are optimistic about our recent initiatives including the non-binding LOI with the BE Group to explore a significant HPC expansion at Baie-Comeau, which will help diversify our revenue streams.

展望未來，我們對最近的舉措持樂觀態度，包括與 BE 集團簽署不具約束力的意向書，探索 Baie-Comeau 的 HPC 重大擴張，這將有助於實現我們收入來源的多元化。

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 8.3 million equity raise completed in July.

現在讓我們轉到下一張投影片，我們將更詳細地審查我們的資本結構。正如我們在第二季財報電話會議上討論的那樣，我們在 8 月全額償還了 Galaxy 貸款。這項成就是透過米拉貝爾基地等非核心資產出售、營運現金流以及 7 月完成的 830 萬股股權融資的結合而實現的。

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 Baie-Comeau.

提前還款比計畫提早了4個月，比原計畫提早了近18個月。此次還款減少了我們的金融負債，消除了每月 110 萬美元的攤銷付款，並改善了我們的現金流量。最重要的是，它增強了我們的資產負債表，並提供了財務靈活性，以專注於未來的成長計劃，包括我們在 Baie-Comeau 的 HPC 擴張。

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 Baie-Comeau facility.

償還 Galaxy 貸款標誌著 Argo 的一個重要里程碑。提前成功償還 3,500 萬美元高利債務凸顯了 Argo 嚴格的財務紀律。隨著 Galaxy 貸款全額償還，我們的剩餘債務包括 4000 萬美元的無擔保票據（將於 2026 年 11 月到期）以及我們的 Baie-Comeau 設施的 100 萬美元抵押貸款。

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

就這樣。我會把它傳回給湯姆。

Thanks Jim. So regarding Helios, 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.

謝謝吉姆。因此，對於 Helios，託管協議將於 2024 年 12 月結束。這標誌著由 23,000 台 S19J Pro 礦工組成的車隊的重大轉變，我們正在探索各種選擇，包括尋找替代託管解決方案或出售機器。

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.

我們正在積極參與市場並審查託管提案，以確定最具成本效益和策略性的前進道路。我們的首要任務是確保營運連續性，同時與我們的長期目標一致。關於 Baie-Comeau 和 HPC，讓我們來討論一下我們在高效能運算方面的進展。

We recently signed a non-binding letter of intent with the BE Group, a specialist in HPC solutions to explore a significant expansion at Baie-Comeau. 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.

我們最近與 HPC 解決方案專家 BE Group 簽署了一份不具約束力的意向書，以探索 Baie-Comeau 的重大擴張。最近完成的可行性研究證實，我們可以調整現有基礎設施的 12 兆瓦來支援 AI 伺服器，並有可能再擴展 11 兆瓦，使總潛在容量達到 23 兆瓦。

Our immediate focus is on finalizing the project planning and design, securing definitive agreements with BE 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 initiative is a key step in diversifying our revenue streams and tapping into high growth markets such as AI and related data processing.

我們目前的重點是完成專案規劃和設計、與 BE 達成最終協議並獲取客戶。我們也正在為該項目的資本支出籌集資金，根據我們目前所知，目標是在 2025 年 4 月上線。這項措施是我們實現收入來源多元化和進軍人工智慧和相關數據處理等高成長市場的關鍵一步。

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.

隨著超大規模企業需求的成長，我們進一步圍繞成長和合作夥伴關係進行對話，高效能運算設施對於支援人工智慧和數據分析等產業至關重要。比特幣礦工擁有獨特的優勢來滿足這一需求，利用他們獲得的可擴展能力和豐富的資料中心營運經驗。

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.

這些優勢使 Argo 能夠支持超大規模企業並推動這個快速擴張的市場的成長。我們也致力於確保低成本可靠電力，以維持永續成長並確保有競爭力的營運。

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.

在這種背景下，我們對營運靈活性的承諾對於我們應對不斷變化的市場條件和能源動態至關重要。在 2024 年剩餘時間內，公司將繼續專注於三大核心支柱：財務紀律、卓越營運、成長和策略夥伴關係。

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.

我謹代表 Argo 的全體員工，向所有股東、利害關係人以及出色的 Argo 團隊表示感謝。我們仍然致力於優化資本結構並為股東創造價值。

With that and I'll pass it back to Investor Meet to Markella for any questions. Thank you.

有了這個，我會將其傳遞回投資者見面會，以解答 Markella 的任何問題。謝謝。

I think that's great. That's great. Thomas Jim. Thank you very much indeed for updating investors today. (Operator Instructions) Markella as you can see, you've had 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.

我認為那太好了。那太棒了。托馬斯·吉姆.非常感謝您今天向投資者通報最新情況。（操作員說明）Markella，如您所見，今天投資者向您提出了許多問題。感謝大家今天下午的參與。如果我可以將這些問題交還給您，並透過問答環節對我們進行調解，最後我會接聽您的電話。

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 fleets at Helios after year-end? Additionally, how should you think of Argo's hash rate trajectory heading into next year? And that should be directed to Thomas.

謝謝你，馬克，謝謝大家。第一個問題來自 H.C. 的 Kevin Dede。溫賴特。年底後你們對 Helios 的 2.4 exahash 艦隊有進一步的決定嗎？此外，您如何看待明年 Argo 的算力軌跡？這應該是針對托馬斯的。

Thanks Mara and 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 of '24, we've been evaluating various pathways to ensure the continued operation of fleet, including alternative hosting arrangements, strategic opportunities or potential asset sale.

謝謝瑪拉，也謝謝凱文。跟進這個。如前所述，我們正在積極探索目前位於 Helios 的 2.4 exahash 隊列的選項。自從 Galaxy 通知我們他們不會在 2024 年 12 月之後續簽託管協議以來，我們一直在評估各種途徑以確保機隊的持續運營，包括替代託管安排、戰略機會或潛在的資產出售。

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. As we move forward we will certainly keep shareholders and stakeholders updated on our plans.

現階段我們尚未做出最終決定，但我們的重點仍然是確定能夠在營運效率和財務靈活性之間實現最佳平衡的選項。隨著我們的前進，我們一定會讓股東和利害關係人了解我們的計劃。

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. But thanks Kevin. Appreciate the question.

關於你問題的第二部分，即明年的算力前景，這在很大程度上取決於 Helios 機群所選擇的路徑以及我們更廣泛的增長計劃，包括剛剛討論的潛在 HPC 擴展。這些措施旨在實現業務多元化並加強我們的業務，我們認為這將有助於您了解股東價值。但謝謝凱文。感謝這個問題。

And thank you, Thomas the next question again from Kevin that 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, ring purchases. What are the company's priorities? And what progress has been made securing inroads in the HPC ecosystem with JPU's customer financing? What is the timeline of execution investors might set as milestones in monitoring Argo's performance here?

謝謝你，湯瑪斯，凱文再次提出下一個問題，這次是問吉姆的問題。最大的問題始終是資本配置。Argo在這方面的優先事項是什麼？魁北克站點開發、替代站點收購、環購買。公司的優先事項是什麼？透過 JPU 的客戶融資確保進軍 HPC 生態系統取得了哪些進展？投資人可能設定的執行時間表是監控 Argo 表現的里程碑嗎？

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 BE 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.

是的，謝謝，凱文。是的，我們的資本配置著重於我們提到的推動永續成長和多元化的措施。我們與 BE 集團簽署了這份不具約束力的意向書，其中概述了我們計劃將現有 12 兆瓦的基礎設施重新用於 HPC，並可能再擴建 11 兆瓦。

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 the first half of 2025.

這符合我們利用現有資產同時利用對 HPC 服務不斷增長的需求的策略。同時，我們正在提升我們在每個 HPC 生態系統中的地位，目標是在 2025 年上半年實現營運上線。

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 consideration. We're committed to keeping investors informed on our progress as we achieve key milestones across both HPC and Bitcoin mining. Thank you.

關於我們的比特幣挖礦業務，有關重新部署或可能出售 Helios 2.4 exahash 隊列的決策將受到市場動態和長期價值考慮的指導。隨著我們在 HPC 和比特幣挖礦方面實現關鍵里程碑，我們致力於讓投資者了解我們的進展。謝謝。

Thank you, Jim. 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?

謝謝你，吉姆。下一個問題來自 Stifel 的 Bill Papanastasiou，將直接向 Thomas 提出。赫利俄斯的艦隊有什麼計畫？有可用的短期託管選項嗎？這個過程會是什麼樣子？

Thanks, Bill. I don't want to repeat everything I said in response to Kevin's question, but our hosting agreement is set to conclude the end of December '24. As I stated in the presentation, this will be a big transition for that fleet.

謝謝，比爾。我不想重複我在回答凱文問題時所說的一切，但我們的託管協議定於 24 年 12 月底結束。正如我在演講中所說，這對該機隊來說將是一個重大轉變。

We are careful 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. So we're trying to be flexible as we explore all those and we'll keep our focus on ensuring you know the continuity and best positioning for our future growth opportunities.

我們正在仔細評估所有選項，我們希望確保優先考慮最符合我們長期目標並提供最大價值的選擇和策略。因此，在探索所有這些方面，我們會努力保持靈活性，我們將繼續專注於確保您了解我們未來成長機會的連​​續性和最佳定位。

Thank you, Thomas. 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 CapEx, financing, and economics of the deal?

謝謝你，托馬斯。比爾·帕帕納斯塔西奧再次提出下一個問題。這次是針對吉姆的。我們什麼時候可以達成最終協議？您能討論一下該交易的資本支出、融資和經濟效益嗎？

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 BE Group and -- 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.

謝謝，比爾。我們對 Baie-Comeau 潛在的 HPC 擴張感到興奮。雖然仍處於早期階段，但已經取得了重大進展，包括與 BE 集團簽署了一份不具約束力的意向書，他們是 HPC 專家，將在現場探索大量部署基礎設施。目前討論已進入後期階段，我們將繼續進行盡職調查和融資評估，以達成最終協議。

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.

根據目前的時間表，我們預計在 2025 年 4 月左右將 HPC 功能上線。儘管現在確定具體的收入貢獻還為時過早，但我們預計這種擴張一旦投入運營，將相對較快地開始增加價值。這項舉措代表了我們多元化和加強收入來源策略的關鍵一步，為我們的比特幣挖礦業務提供了平衡且有彈性的基礎。謝謝。

Thank you Jim. And the next question was presubmitted 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?

謝謝吉姆。下一個問題是在財報電話會議之前預先提交的，並將再次針對您。您能否分享一下 Argo 當前債務狀況的最新情況以及為加強資產負債表而採取的任何措施？

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.

是的。謝謝你的提問。如前所述，我們已經註銷了 Galaxy 債務，將無擔保票據作為我們的主要未償債務，這些債務是非攤銷的，將於 2026 年 11 月到期。我們的償債成本大大降低，因為 26 年末到期的債券是只付利息的。

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

我們在 Baie-Comeau 設施上還剩下一筆小額抵押貸款，我們正在尋求擴大該抵押貸款，以幫助 Baie-Comeau 潛在的 HPC 擴建提供資金。加強我們的資產負債表仍然是我們的首要任務，隨著我們的進展，我們將向股東通報最新情況。

Thank you, Jim. Next question is directed to Thomas again, a presubmitted one in the chat with both Bitcoin mining and high performance computing. Now, part of Argo strategy, how is the company planning to allocate resources between the two segments to maximize shareholder value.

謝謝你，吉姆。下一個問題再次針對 Thomas，他是在比特幣挖礦和高效能運算聊天中預先提交的問題。現在，作為 Argo 策略的一部分，公司計劃如何在兩個部門之間分配資源，以實現股東價值最大化。

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 and as we build out HPC capabilities, we're going to leverage our infrastructure to access additional revenue streams.

謝謝馬克拉。我們的資本配置策略專注於產生長期股東回報，同時平衡比特幣挖礦和高效能運算的動態。我們認為比特幣挖礦仍然是我們營運的一部分，隨著我們建立高效能運算能力，我們將利用我們的基礎設施來獲得額外的收入來源。

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 and energy and infrastructure management, which should position us to thrive in both segments as opportunities evolve.

這種多元化應該會增強我們在不同市場條件下產生回報的能力。我們的方法是將資本分配到能創造最大價值並與我們的優勢以及能源和基礎設施管理一致的地方，這將使我們能夠隨著機會的發展在這兩個領域蓬勃發展。

Thank you, Thomas. Next question is presubmitted 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?

謝謝你，托馬斯。下一個問題是在財報電話會議之前預先提交給吉姆的。Argo 計劃如何管理比特幣價格與其更廣泛的商業模式相關的潛在波動，特別是在添加 HPC 組件的情況下？

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 Baie-Comeau, we're positioning Argo to benefit from diversified revenue streams beyond Bitcoin.

感謝馬克拉提出的問題。比特幣市場確實存在固有的波動性，這會影響礦工的收入，但我們管理這個問題的方法包括建立更具彈性的商業模式。透過在 Baie-Comeau 探索 HPC，我們將 Argo 定位為從比特幣以外的多元化收入流中受益。

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.

HPC 擴張將使我們能夠利用我們的基礎設施來滿足人工智慧和資料處理等高成長運算市場的需求，從而補充我們的採礦業務，從而提供更可預測的收入。這種多元化減少了我們承受比特幣價格波動的風險，並增強了我們在多個領域創造價值的能力。因此，HPC 的加入有助於平衡我們的產品組合，為支持成長奠定更堅實的基礎，無論加密貨幣市場狀況如何。

Thank you Jim, another presubmitted question directed for you. Are there any plans to start paying dividend?

謝謝吉姆，這是另一個針對您預先提交的問題。有計劃開始發放股息嗎？

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.

是的，謝謝。目前，我們沒有計劃發放股息，多餘的現金將用於加強我們的資產負債表和支持策略性成長舉措，以推動未來的成長。

Thank you Jim. Another presubmitted question for you again. Could you provide an update on the status of the class action lawsuit?

謝謝吉姆。再次向您提出另一個預先提交的問題。您能否提供有關集體訴訟的最新情況？

Yeah, as Tom mentioned as we and as we are and 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 we were very pleased with this resolution.

是的，正如湯姆所提到的，正如我們以及我們之前所提到的，我們很高興地報告，紐約南區於 10 月初駁回了集體訴訟，既沒有偏見，也沒有允許修改。所以我們對這個決議感到非常滿意。

Thank you, Jim. Next question is directed to Thomas and another presubmitted one. Could you speak on fleet efficiency in current has rate environment?

謝謝你，吉姆。下一個問題是針對托馬斯和另一個預先提交的問題。能談談目前費率環境下的機隊效率嗎？

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 new changes in hash rate, hash rate energy environments, ensuring that the current fleet remains cost effective.

當然。因此，我們目前兩個站點的機隊效率約為每太哈希 30 焦耳，可以在必要時靈活地降低這些機器的時脈頻率，以實現更高的效率。當然，這種適應性使我們能夠優化機隊的性能，以應對算力、算力能源環境的新變化，確保目前機隊保持成本效益。

Thank you, Thomas next question. Also presubmitted and addressing you is exploring the switch to HPC. Hinting a shift in the company's core operations.

謝謝你，托馬斯，下一個問題。另外，我們也預先提交了向 HPC 轉型的探索。暗示公司核心業務發生轉變。

Thanks, Markela. 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 streams.

謝謝，馬克拉。如前所述，Argo 繼續評估策略機會和市場狀況，我們持開放態度並致力於探索所有選擇。隨著對運算能力的需求不斷增長，我們看到了高效能運算的巨大潛力，並且我們將其視為實現收入來源多元化的機會。

So as we look ahead we're keeping open mind about what the appropriate mix of HPC and mining might be and will certainly firm up our opinion in this regard as we further our conversations with BE and as more data becomes available.

因此，展望未來，我們對 HPC 和挖礦的適當組合持開放態度，並且隨著我們進一步與 BE 進行對話以及獲得更多數據，我們肯定會堅定我們在這方面的觀點。

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 shareholders?

謝謝你，托馬斯。下一個問題也是預先提交並針對吉姆的。Argo是否正在考慮未來籌資的可能性？

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's important to consider the long-term value such funding can deliver.

謝謝，馬克拉。是的。無論是透過債務還是股權籌集資金始終是旨在推動永續成長的策略決策。雖然發行新股可能會導致稀釋，但重要的是要考慮此類資金可以帶來的長期價值。

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.

我們的許多業內同行已成功籌集資金以擴大業務、增強基礎設施並進入 HPC 和 AI 等高成長市場。同樣，我們未來籌集的任何資金都將仔細定位以加速成長並確保 Argo 保持競爭力。透過平衡短期影響與長期機會，我們的目標是為股東創造可持續的價值。

Thank you, Jim. 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?

謝謝你，吉姆。我相信我們還有時間再問一個問題，這也是預先提交的問題之一，是針對托馬斯的。Argo 如何應對美國比特幣挖礦不斷變化的監管環境，特別是考慮到最近的政治變化？

Thanks, Markella. 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 a broader industry.

謝謝，馬克拉。圍繞比特幣挖礦的政治格局仍然複雜，但最近美國大選後的環境無疑帶來了新的樂觀情緒，我們可以看到，隨著比特幣價格創下歷史新高。預計即將上任的政府將對加密貨幣友好，這可以創造一個更穩定的監管環境，這將有利於 Argo 和更廣泛的行業。

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.

現在預測具體的監管變化還為時過早，而且不乏各種提案，但我們正在密切關注這些進展。最終，我們相信具有支持電網穩定性和再生能源專案能力的比特幣挖礦將繼續帶來巨大的機會和吸引力。

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. And I think, Markella, you 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.

HPC 可能會添加到我們的產品組合中，進一步豐富了我們的收入來源，使我們能夠靈活應對未來可能發生的任何政治或監管變化。我想，馬克拉，你說過這是最後一個問題，所以我想花一點時間對今天提交問題的所有人表示感謝。我們很感激。

Okay. That's great. Thank you, Thomas, Markella, and Jim for updating investors. Could I please ask investors not 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 may take a few moments to complete, but I'm sure it'll be greatly valued by the company on behalf of the management team of Argo Blockchain PLC.

好的。那太棒了。感謝托馬斯、馬克拉和吉姆向投資者通報最新情況。我能否請投資者不要結束會議，因為我們現在將自動重定向您，以便您有機會提供反饋，以便公司能夠更好地了解您的觀點和期望，這可能需要一些時間才能完成，但我確信代表Argo Blockchain PLC管理團隊的公司將對此給予高度重視。

We'd like to thank you for attending today's presentation and wish you all a good rest of your day. Thank you.

我們感謝您參加今天的演示，並祝大家有個愉快的一天。謝謝。