Argo Blockchain Secures $20M Loan to Build Out West Texas Mining Facility
Godfrey Benjamin Jun 30, 2021 08:30
London-based Argo blockchain has secured a $20 million loan from Galaxy Digital, providing momentum as a driving force to expansion.
Argo Blockchain Plc, a London-based publicly listed crypto mining firm, has announced that it has secured a £14 million ($20 million) loan from Galaxy Digital.
As unveiled by the firm, the loan will last six months and support the firm in its expansion drives without selling off its current Bitcoin holdings.
According to the firm, the loan facility will bolster earlier funds raised by the firm and build a new data centre in West Texas. The company is also seeking to use the loan proceeds to meet operating cash flow requirements. The firm has filed in its Bitcoin assets as collateral for the loan.
“We are delighted to work with @GalaxyDigitalHQ as we pursue our growth plans and to form a solid relationship with them as a financing partner,” said Peter Wall, the Chief Executive Officer of Argo Blockchain. “This agreement allows Argo to secure competitive terms on a loan facility while also allowing us to continue to HODL our Bitcoin.”
HODLing its Bitcoin holdings is essential as the market currently experiencing a bearish downturn, and sell-offs at this time may not bring about profitability. Meanwhile, the company’s expansion into North America is coming on the heels of the Chinese government enforcing a ban on all crypto-related activities, including mining.
The ban has resulted in the migration of miners, and many industry proponents see this situation as the ideal time for industry stakeholders to take advantage of the current gap in mining to establish a foothold. The expansion into North America, and the crypto-friendly Texas state, show the company’s readiness to take advantage of the trends in the ecosystem. The company had been making plans for this move before this time as it recently unveiled the acquisition of 320 acres of land to build out the facility.
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