Argo Blockchain PLC Announces Loan Extension

Rhea-AI Summary

Argo Blockchain, a global leader in cryptocurrency mining predominantly using 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 stands at $5.7 million, significantly reduced from the original $35 million advanced in December 2022. The repayment is expected to lower Argo's monthly interest expenses from $440,000 in July 2023 to $78,000 by July 2024.

Positive

• Extension of loan term with Galaxy Digital Holdings to 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.

Negative

• None.

Insights

Financial Analyst

The extension of the loan 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 of 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 drop in monthly interest expense from $440k to $78k is substantial, improving net cash flow and potentially freeing up capital for other strategic initiatives.

Argo’s focus on the adoption of renewable energy is also noteworthy. This aligns with global sustainability trends and can enhance their appeal to environmentally conscious investors. However, the continued dependency 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 hinges on consistent crypto market performance and operational efficiency.

Investors should monitor how Argo leverages these financial improvements in their strategic operations, especially considering market volatility. While the loan extension provides a financial cushion, broader market conditions remain a key determinant of future performance.

Extension of Galaxy Loan

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 with Galaxy Digital Holdings Ltd. ("Galaxy") through to 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 further loan repayment, the Company expects reduced monthly interest expense on the loan from $440k in July 2023 to $78k in July 2024.

This announcement contains inside information.

For further information please contact:

Argo Blockchain
Investor Relations	ir@argoblockchain.com
Tennyson Securities
Corporate Broker Peter Krens	+44 207 186 9030
Fortified Securities
Joint Broker Guy Wheatley, CFA	+44 74930989014 guy.wheatley@fortifiedsecurities.com
Tancredi Intelligent Communication UK & Europe Media Relations	argoblock@tancredigroup.com

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With mining operations in Quebec and Texas, and offices in the US, Canada, and the UK, Argo's global, 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Argo Blockchain PLC

View the original press release on accesswire.com

FAQ

What is the current loan balance of Argo Blockchain's loan with Galaxy Digital as of June 30, 2024?

As of June 30, 2024, the loan balance stands at $5.7 million.

How much was Argo Blockchain's original loan with Galaxy Digital?

The original loan amount was $35 million, advanced in December 2022.

When has Argo Blockchain's loan with Galaxy Digital been extended to?

The loan has been extended to December 28, 2024.

How much will Argo Blockchain's monthly interest expense reduce to by July 2024?

Argo's monthly interest expense is expected to reduce to $78,000 by July 2024.

What is Argo Blockchain's stock symbol?

Argo Blockchain's stock symbol is ARBK.