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Argo Blockchain Extends $5.7M Loan with Galaxy Digital
ByAinvest
Monday, Jul 1, 2024 2:30 am ET1min read
Argo Blockchain plc extends its loan with Galaxy Digital Holdings Ltd. until December 28, 2024, with the remaining balance at $5.7 million. This marks a significant reduction from the initial $35 million loan taken in December 2022. With the decrease in the loan, Argo Blockchain expects a reduction in monthly interest expense, going from $440k in July 2023 to $78k in July 2024.
Argo Blockchain plc, a leading cryptocurrency mining company, has announced an extension and reduction of its loan with Galaxy Digital Holdings Ltd. The original loan, which was taken out in December 2022, was for $35 million and was secured against the company's Helios facility in Texas [1].
However, with the recent sale of the Helios facility to Galaxy for $65 million [1], Argo has been able to reduce its outstanding loan balance to $5.7 million. This significant reduction in the loan balance is expected to lead to a substantial decrease in the company's monthly interest expenses.
According to the company's latest financial statements, Argo's monthly interest expenses were $440,000 in July 2023 and are expected to decrease to $78,000 in July 2024 [1]. This reduction in expenses will have a positive impact on Argo's financial performance and will enable the company to continue its operations more effectively.
The extension and reduction of the loan are part of a larger transaction between Argo and Galaxy, which also included the sale of the Helios facility and the refinancing of Argo's asset-backed loans. This transaction is expected to strengthen Argo's balance sheet, improve its liquidity position, and enable the company to continue operations [1].
Sources:
[1] Argo Blockchain. (2022, December 28). Sale of Helios to Galaxy and New Asset-Backed Loan. https://argoblockchain.com/news-room/2022-december-helios-sale-to-galaxy
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