Argo Blockchain, one of the global leaders in the Bitcoin mining sector, has announced taking a loan from a New York Digital Investment Group subsidiary. The $70.6M loan will buy equipment for the Argo Helios mining facility in Texas.
Argo Blockchain takes $70.6M from NYDIG subsidiary
The official press release said that the Argo Blockchain plans to borrow up to $70.6 million at an interest rate of 12%. The loan will be issued in instalments up to July 2022. Before this loan, Argo Blockchain had already signed an equipment financing deal with the NYDIG subsidiary.
“We are delighted to secure this additional non-dilutive funding which will enable us to continue fitting out phase 1 of our Helios site. NYDIG understand the financial requirements of large-scale bitcoin miners, and we are excited to continue working with them to execute and deliver on the next phase of Argo’s growth,” said the Chief Executive of Argo, Peter Wall.
In the previous equipment financing deal, the mining company had announced taking a loan of $26.66 million at an 8.25% per annum interest rate and a duration of four years. The funds will go towards buying the electrical equipment needed to support the company’s flagship mining facility in Texas. The Helios facility runs on 200 megawatts (MW to operate. To energize the facility, Argo has taken loans of over $97 million.
In the last quarter of 2021, Argo announced that it had raised around $40 million through issuing senior notes traded on the Nasdaq Global Select Market. The company’s audited results for2021 showed revenues of $100 million, a 291% increase year-on-year. The company’s EBITDA also gained by 594% to hit $71 million.
Crypto mining activities in Texas
The cryptocurrency sector has been under intense criticism because of the energy-intensive process of mining cryptocurrencies. The sector has been taking measures to shift towards renewable energy sources and creating environmentally responsible plants.
Texas has become a prime hub for crypto mining activities, given the state’s abundance of renewable energy. Argo has a new 126,000 square-foot mining facility in West Texas. The facility mainly relies on wind and solar energy. During the company’s latest earnings call, the CEO said that 85% of mining energy was derived from renewable energy. Argo Helios will be launched this month.
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