How has ARBK's earnings trend changed in 2024?

Argo Blockchain's earnings trend in 2024 has been impacted by various factors, including the Bitcoin halving, changes in mining operations, and market conditions. Here's a detailed analysis: 1. **Revenue Increase in H1 2024**: Argo Blockchain experienced an 18% increase in revenues for the first half of 2024, reaching $29.3 million compared to $24.0 million in the same period of 2023. This growth was primarily driven by an increase in Bitcoin prices, despite the Bitcoin halving and a decrease in the number of Bitcoin mined. 2. **Impact of Bitcoin Halving**: The Bitcoin halving event in 2024 had a significant impact on Argo Blockchain's revenues. There was a 46% decrease in the total number of Bitcoin mined during the first half of 2024, dropping from 947 to 507. This reduction, coupled with a 26% revenue decline from the previous quarter, highlights the challenging market conditions for miners post-halving. 3. **Strategic Responses**: Argo Blockchain has been actively managing its financial position and operational expenses. The company reduced its debt by $7.2 million and repaid the Galaxy loan in full. Additionally, operational expenses were cut by over 70% since the second half of 2022, indicating a focus on cost management. 4. **Q3 2024 Performance**: In the third quarter of 2024, Argo Blockchain reported a revenue of $7.5 million, which is a decline from the $10.4 million recorded in the same quarter of the previous year. This decline may reflect ongoing challenges in the cryptocurrency market and mining operations. 5. **Cash Flow and Asset Impairments**: Argo Blockchain has been managing its cash flow and assets cautiously. The company ended the second quarter of 2024 with $4 million in cash and completed an equity raise of $8.3 million post-quarter. However, a substantial non-cash impairment charge of $22 million was recorded on mining equipment, which could impact the company's financials. In conclusion, Argo Blockchain's earnings trend in 2024 has been influenced by the Bitcoin halving, with a notable decline in revenues and Bitcoin mined. Despite these challenges, the company has shown resilience through strategic debt reduction and cost management. The third quarter of 2024 saw a further decline in revenues, highlighting the ongoing impact of market conditions on the company's financial performance.