Argo Blockchain PLC Announces Statement re Loan Repayment

Rhea-AI Summary

Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK) has fully repaid its $35 million loan from Galaxy Digital Holdings, (GLXY) ahead of schedule. The loan, originally extended on December 28, 2022, was repaid over four months early and nearly 18 months ahead of the original repayment schedule. Repayments began in May 2023, with the loan balance at June 30, 2024, standing at approximately $5.7 million.

The company repaid $11.5 million in 2023 and the remaining $23.5 million in 2024. Interest expense on the Galaxy debt was $4.6 million in 2023 and $1.4 million through August 9, 2024. CEO Thomas Chippas stated that this early repayment demonstrates Argo's financial discipline and commitment to optimizing its capital structure for long-term shareholder value.

Positive

• Full repayment of $35 million Galaxy loan ahead of schedule
• Loan repaid 4 months early and 18 months ahead of original schedule
• Repayment made using cash flow from operations, equity raises, and sale of non-core assets
• No meaningful impact on Argo's hash rate despite loan repayment
• Reduced interest expense from $4.6 million in 2023 to $1.4 million in 2024 (through repayment date)

Negative

• High-interest rate debt of $35 million required repayment
• Sale of non-core assets needed to facilitate loan repayment

Argo Blockchain plc

("Argo" or "the Company")

Full Repayment of $35 Million Galaxy Loan

LONDON, UNITED KINGDOM / ACCESSWIRE / August 12, 2024 / 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") (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:

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

How much was Argo Blockchain's loan from Galaxy Digital?

Argo Blockchain's loan from Galaxy Digital was $35 million, which has now been fully repaid.

When did Argo Blockchain (ARBK) start repaying the Galaxy loan?

Argo Blockchain (ARBK) began repaying the Galaxy loan in May 2023.

How much earlier did Argo Blockchain repay the Galaxy loan?

Argo Blockchain repaid the Galaxy loan four months ahead of the current schedule and nearly 18 months ahead of the original repayment schedule.

What was Argo Blockchain's (ARBK) loan balance as of June 30, 2024?

Argo Blockchain's (ARBK) loan balance as of June 30, 2024, was approximately $5.7 million.

How did Argo Blockchain (ARBK) fund the repayment of the Galaxy loan?

Argo Blockchain (ARBK) funded the repayment using cash flow generated from operations, cash from equity raises, and cash generated through the sale of non-core assets.