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