Argo Blockchain PLC has successfully closed the sale of its Mirabel, Quebec data center for a total consideration of $6.1 million. The net proceeds from the transaction were used to repay the outstanding mortgage and reduce debt owed to Galaxy Digital Holdings, Ltd. The company's debt balance has been reduced by 63% from the original Galaxy debt balance of $35.0 million. The sale enables Argo to delever the balance sheet with minimal impact on revenue and has allowed the relocation and deployment of mining machines to its facility in Baie Comeau, Quebec, which is expected to reduce non-mining operating expenses by $0.7 million per year.
Thomas Chippas, Argo's Chief Executive Officer, expressed his satisfaction with the transaction, stating, "The Company reduced its debt by $12.4 million in Q1 2024. Additionally, consolidating our Quebec fleet at the Baie Comeau facility allows us to streamline operations and make the most efficient use of the facility and onsite team."
In addition to the sale, the company has issued 460,477 new ordinary shares as part of previously granted Restricted Share Units under the 2022 Equity Incentive Plan. These shares rank pari passu with the existing ordinary shares and have been admitted to the Official List and trading on the Main Market of the London Stock Exchange PLC.
As of 31 March 2024, Argo's share capital consists of 577,616,315 ordinary shares, all with equal voting rights and no shares held in Treasury. The company has also provided forward-looking statements, addressing its current views, interpretations, beliefs, or expectations with respect to its financial performance, business strategy, and plans. These statements include forward-looking statements with respect to the company and the sector and industry in which it operates.