Argo Blockchain Extends $5.7M Loan with Galaxy Digital
ByAinvest
Monday, Jul 1, 2024 2:30 am ET1min read
ARBK--
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
HLIO--
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
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet