Press release
12 August 2024
Argo Blockchain
plc
("Argo"
or "the
Company")
Full Repayment of $35 Million Galaxy Loan
Argo Blockchain plc, a global leader
in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK), is pleased to
announce that it has fully repaid the remaining balance of the
original loan extended by Galaxy Digital Holdings, Ltd. ("Galaxy")
(TSX: GLXY) on 28 December 2022. Repayments of the $35 million loan
began in May 2023. The loan balance as at June 30, 2024 was
approximately $5.7 million.
This Galaxy debt was repaid over
four months ahead of the current schedule, and nearly 18 months
ahead of the original repayment schedule. The early repayment
reflects the Company's focus on strengthening its balance sheet and
reducing its financial liabilities. Principal repaid in 2023 was
$11.5 million, and the remaining $23.5 million was repaid in 2024.
For comparison purposes, interest expense on the Galaxy debt in
2023 was $4.6 million, compared to $1.4 million through the
repayment date of August 9,
2024.
Management Commentary
Argo's Chief Executive Officer,
Thomas Chippas, said, "Repaying the Galaxy loan is a significant
milestone for Argo. Repayment was made possible by using cash flow
generated from operations, cash generated from equity raises, and
cash generated through the sale of non-core assets without any
meaningful impact to Argo's hash rate. Successfully repaying
$35 million of high-interest rate debt ahead of schedule is a
testament to Argo's financial discipline. We remain committed to optimising our capital structure and
driving long-term value for our shareholders."
This announcement contains inside
information.
For further information please
contact:
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.