Loan allows Argo to retain its current Bitcoin holding
Argo Blockchain (LON:ARB) confirmed on Friday that it has secured a £18.05m loan agreement with Galaxy Digital by using some of its Bitcoin as collateral.
The loan will mature on 29 October 2021.
The blockchain mining company’s outstanding loan with Galaxy is valued at £14m, meaning the new loan agreement will come to a total of £32.05m.
The money will be allocated, in addition to the funds raised by the company previously, to continue the build-out of the West Texas data centre and to meet the firm’s operating cash flow requirements.
The loan will enable Argo to retain its current Bitcoin holding, whilst further expanding its mining operations.
“Argo is delighted to continue working with Galaxy as its financing partner,” the company added.
Argo Blockchain made £6.83m in mining revenue last month, an increase of £2.23m, as the price of bitcoin rose.
The bitcoin mining company mined a total of 206 bitcoins in August, down from 225 in July, bringing the overall amount mined for the year-to-date to 1,314.
Argo sold 61 bitcoins last month, and kept a total of 1,659 bitcoins on its balance sheet, priced at a market value of $82m as of Friday morning.
Peter Wall, Chief Executive of Argo and interim Chairman said: “I am pleased that we have been able to deliver these results at an improved margin this month and continue to deliver value to our shareholders. We are also delighted to have released our Climate Strategy and remain committed in our efforts to enact positive change within the crypto mining sector.”
Argo Blockhain, listed on the London Stock Exchange (LSE) at present, is weighing up a secondary listing on Nasdaq.
 confirmed on Friday that it has secured a £18.05m loan agreement with Galaxy Digital by using some of its Bitcoin as collateral.){kind=link}