News
Argo Blockchain PLC Announces Loan Extension
Argo Blockchain, a global leader in cryptocurrency mining that uses predominantly renewable energy, has announced an extension of its loan agreement with Galaxy Digital Holdings through December 28, 2024. As of June 30, 2024, the loan balance is $5.7 million, significantly reduced from the original $35 million advanced in December 2022. The repayment is expected to reduce Argo’s monthly interest expense from $440,000 in July 2023 to $78,000 by July 2024.
Positive
- Extension of loan term with Galaxy Digital Holdings until December 28, 2024.
- Significant reduction in loan balance from $35 million to $5.7 million as of June 30, 2024.
- Expected reduction in monthly interest expenses from $440,000 in July 2023 to $78,000 in July 2024.
THE loan extension with Galaxy Digital Holdings Ltd. marks a significant development for Argo Blockchain PLC. From a financial perspective, the extension reduces the immediate pressure on the company’s liquidity, allowing it to manage its cash flow more effectively. The reduction in the loan balance from $35 million to $5.7 million demonstrates strong progress in repayment, which is a positive indicator of the company’s financial health. The decline monthly interest expense $440,000 to $78,000 is substantial, improving net cash flow and potentially freeing up capital for other strategic initiatives.
Argo’s focus on adoption renewable energy It is also noteworthy. This is in line with global sustainability trends and may increase their attractiveness for environmentally conscious investors. However, the continued dependence on the volatile cryptocurrency market remains a risk factor. In the short term, the company’s financials benefit from reduced interest obligations, but long-term success depends on the consistent performance of the cryptocurrency market and operational efficiency.
Investors should monitor how Argo leverages these financial improvements in their strategic operations, especially given market volatility. While the loan extension provides a financial cushion, broader market conditions remain a key determinant of future performance.
01/07/2024 – 02:00
Galaxy loan extension
LONDON, UNITED KINGDOM / ACCESSWIRE / July 1, 2024 / Argo Blockchain plc, (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining using predominantly renewable energy, announces the extension of its loan facility with Galaxy Digital Holdings Ltd. (“Galaxy”) through December 28, 2024. As of June 30, 2024, the outstanding balance of the loan is $5.7 million, which has been reduced from the $35 million originally advanced in December 2022. With this additional loan repayment, the Company expects to reduce its monthly interest expense on the loan from $440,000 in July 2023 to $78,000 in July 2024.
This announcement contains confidential information.
For further information contact:
About Argo:
Argo Blockchain plc is a publicly traded (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With mining operations in Quebec and Texas and offices in the United States, Canada and the United Kingdom, Argo’s global and sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate-positive cryptocurrency mining company and a signatory to the Crypto Climate Accord. For more information, visit www.argoblockchain.com.
This information is provided by RNS, the London Stock Exchange news service. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For further information, contact email: rns@lseg.com or visit www.rns.com.
SOURCE: Argo Blockchain PLC
View the original Press release on accesswire.com
FAQ
What is Argo Blockchain’s current loan balance with Galaxy Digital as of June 30, 2024?
As of June 30, 2024, the loan balance is $5.7 million.
How much was Argo Blockchain’s original loan to Galaxy Digital?
The original loan amount was $35 million, disbursed in December 2022.
When was Argo Blockchain’s loan with Galaxy Digital extended?
The loan has been extended until December 28, 2024.
How much will Argo Blockchain’s monthly interest expenses reduce by July 2024?
Argo’s monthly interest expense is expected to reduce to $78,000 by July 2024.
What is the stock symbol for Argo Blockchain?
Argo Blockchain’s stock symbol is ARBK.