CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Argo Blockchain borrows £18.5m to build out data centre

By Jenny McCall

12:29, 10 September 2021

A picture of cryptocurrency equipment mining money electronic finance coin
cryptocurrency equipment mining money electronic finance coin - Photo: Shuttershock.

The cryptocurrency mining company, Argo Blockchain announced plans Friday to borrow £18.5m ($25m) from Galaxy Digital LP.

Expanding operations

Proceeds of the loan will be used, alongside existing funds, to continue the build out of the company’s data centre in West Texas. Argo will also use the loan to meet operating cash flow requirements.

What is your sentiment on BCH/USD?

435.05
Bullish
or
Bearish
Vote to see Traders sentiment!

Existing loan

Argo will use a portion of its Bitcoin Holdings as collateral.

The new loan will be rolled into an existing loan with Galaxy Digital, resulting in a total outstanding principal amount of £32m.

In June, Argo entered into six-month agreement with Galaxy Digital to borrow £14m. Proceeds of that loan were also intended for build out of the West Texas data centre and for operating cash flow requirements.

GBP/USD

1.27 Price
-0.370% 1D Chg, %
Long position overnight fee -0.0040%
Short position overnight fee -0.0042%
Overnight fee time 22:00 (UTC)
Spread 0.00013

AUD/USD

0.65 Price
-0.690% 1D Chg, %
Long position overnight fee -0.0049%
Short position overnight fee -0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.00006

GBP/JPY

197.91 Price
+0.410% 1D Chg, %
Long position overnight fee 0.0084%
Short position overnight fee -0.0166%
Overnight fee time 22:00 (UTC)
Spread 0.035

EUR/USD

1.06 Price
-0.610% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 0.00006

Planned US listing

Argo is the only cryptocurrency miner to be listed on the London Stock Exchange.

The company applied in August to list American Depositary Receipts, or ADRs, on the US Nasdaq Global Market under the ticker symbol “ARBKF”.

Argo reported total revenue for the six months ended 30 June of £31.1m, representing a growth rate of 179% over £11,1m in the prior year period. Net income was £7.2m and £523k, respectively. EBITDA was £16m compared to £7.6m.  

Argo Blockchain’s stock price was down 0.73% at 136.00p in afternoon trading today.

Read more: Argo Blockchain ponders Nasdaq listing

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading