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Bitcoin miner Argo Blockchain borrows $70 million to buy equipment for Texas site

Bitcoin miner Argo Blockchain borrows $70 million to buy equipment for Texas site, Crypto Trading News
The popular Bitcoin-Miner Argo Blockchain has announced it will assume additional debt under Argo’s Equipment Financing Agreement from a subsidiary of New York Digital Investment Group (NYDIG). The move will help Argo fund the purchase of mining equipment for its Helios facility in Dickens County, Texas.

Argo approaches NYDIG for additional equipment funding

As part of the financing, Argo will borrow up to $70.6 million from NYDIG at interest rates fixed at 12%, according to the official press release. The loan will be offered in allotments from April to July 2022. Following development, Argo Chief Executive Peter Wall commented,

“We are pleased to secure this additional non-dilutive financing which will allow us to further equip Phase 1 of our Helios site. NYDIG understands the financial needs of large Bitcoin miners and we look forward to continuing to work with them to implement and deliver the next phase of Argo’s growth.”

The latest development comes less than two months after the bitcoin miner signed an equipment financing agreement with NYDIG affiliate.

It announced it would borrow $26.66 million at an interest rate of 8.25% per annum for four years to purchase electrical infrastructure equipment for the Company’s flagship mining facility in to recapitalize Texas. The focus was also on being able to “energize” the 200 megawatt (MW) Helios system. In total, Argo has borrowed more than $97 million.

Argos facility in Texas

After severe criticism of energy-guzzling mining rigs, the crypto mining industry has made a rapid transition towards creating green power plants, even though a full switch to renewable energy would take a few more years.

Argo’s new 126,000-square-foot facility in west Texas will also be powered primarily by wind and solar power, the chief executive claims. During the last conference call, Wall noted that 85% of its electricity comes from renewable sources, mostly wind. Mining Operations at Helios are scheduled to begin later this month.

Argo also announced that it raised approximately $40 million in unsecured debt through the issuance of senior notes trading on the Nasdaq Global Select Market during the last quarter of 2021.

The company released its audited results for 2021, which showed revenue of $100 million, up 291% year-on-year, largely due to a massive surge in Bitcoin’s hash rate. EBITDA, too, soared a staggering 594% to $71 million through 2021.

Source: Crypto News Deutsch

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