Shares of cryptocurrency mining firm Argo Blockchain (LON: ARB) have jumped on Friday after the company announced it has entered into an £18.05 million ($25 million) loan agreement.
The agreement, which has a maturity date of October 29, 2021, is with Galaxy Digital LP, using a portion of the Company's Bitcoin holding as collateral.
The company currently has an outstanding loan of £14 million ($20 million) with Galaxy Digital, which will be rolled into the new loan agreement. It means the total outstanding principal amount is £32.05 million ($45 million).
Argo said the proceeds will be used, in conjunction with funds raised by the company previously, to continue the build-out of its West Texas data centre and meet its operating cash flow requirements.
In addition, the loan will enable the London-listed company to retain its current Bitcoin holding while expanding its mining operations.
“Argo is delighted to continue working with Galaxy as its financing partner,” the company stated.
Argo shares jumped to a high of 145p at the open. They are currently sitting at 139.2p, up 1.61% from Thursday's close.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.