REG - Argo Blockchain PLC - Statement re Loan Repayment

Argo BlockchainAnnouncement

12/08/2024 07:00

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RNS Number : 9858Z  Argo Blockchain PLC  12 August 2024

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:

 Argo Blockchain
 Investor Relations                  ir@argoblockchain.com (mailto:ir@argoblockchain.com)
 Tennyson Securities
 Corporate Broker                    +44 207 186 9030

 Peter Krens
 Fortified Securities
 Joint Broker                        +44 74930989014

 Guy Wheatley, CFA                   guy.wheatley@fortifiedsecurities.com
                                     (mailto:guy.wheatley@fortifiedsecurities.com)
 Tancredi Intelligent Communication  argoblock@tancredigroup.com (mailto:argoblock@tancredigroup.com)

 UK & Europe Media Relations

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 (http://www.argoblockchain.com/) .

 

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