Argo Blockchain Completes Sale of Quebec Data Center and Issues New Shares

Argo Blockchain plc, a prominent entity in the cryptocurrency mining sector, has officially concluded the sale of its Mirabel, Quebec data center for $6.1 million. This strategic move is part of the company’s broader initiative to strengthen its balance sheet by reducing its outstanding debt, which saw a significant 63% reduction in its Galaxy Digital Holdings loan. The sold facility’s mortgage was also fully repaid as part of this process.

The proceeds from the sale have been instrumental in paying down the company’s debt, particularly the one owed to Galaxy Digital Holdings. Following the transaction and monthly amortizations, Argo's debt to Galaxy now stands at $12.8 million, marking a substantial decline from the initial $35.0 million. This transaction is pivotal for Argo as it seeks a leaner operational footprint without significantly affecting its revenue streams.

Further enhancing its corporate framework, Argo announced the issue of 460,477 new ordinary shares under its 2022 Equity Incentive Plan. This step, approved in the company’s annual general meeting, is aimed at fostering its growth strategy and recognizing the contribution of its workforce.

Argo's CEO, Thomas Chippas, expressed satisfaction with the sale and the overall direction of the company. He highlighted the significant debt reduction achieved in the first quarter of 2024 and pointed out the operational efficiencies gained through consolidating mining operations in Quebec. This strategic consolidation is expected to save the company approximately $0.7 million annually in non-mining operational costs.