Blockchain
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.
- Significantly reduced 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. Financially, the extension reduces immediate pressure on the company’s liquidity, allowing it to manage its cash flow more effectively. Reducing the loan balance from $35 million to $5.7 million demonstrates strong repayment progress, which is a positive indicator of the company’s financial health. The decline monthly interest expense from $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 appeal to environmentally conscious investors. However, 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 consistent cryptocurrency market performance and operational efficiency.
Investors should monitor how Argo leverages these financial improvements into their strategic operations, especially considering market volatility. While the loan extension provides a financial cushion, broader market conditions remain a key driver of future performance.
07/01/2024 – 02:00 AM
Galaxy Loan Extension
LONDON, UK / ACCESSWIRE / 1 July 2024 / Argo Blockchain plc, (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining using predominantly renewable energy, announces the extension of its loan with Galaxy Digital Holdings Ltd. (“Galaxy”) through December 28, 2024. As of June 30, 2024, the remaining 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.
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About Argo:
Argo Blockchain plc is a dual-listed blockchain technology company (LSE: ARB; NASDAQ: ARBK) 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 signatory to the Crypto Climate Accord. For more information visit www.argoblockchain.com.
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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 with Galaxy Digital?
The original loan amount was $35 million, prepaid in December 2022.
When has Argo Blockchain’s loan with Galaxy Digital been extended to?
The loan has been extended until December 28, 2024.
How much will Argo Blockchain’s monthly interest expense be 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.