Argo Blockchain receives $20M Bitcoin-backed loan from Galaxy Digital for Texas mining facility

Galaxy Digital has issued a $20 million mortgage to U.Ok.-based crypto mining firm Argo Blockchain for constructing a knowledge heart in West Texas.

In a Tuesday announcement from Argo, the agency said it had secured £14 million — roughly $19.4 million at time of publication — in a six-month mortgage settlement from Galaxy Digital utilizing a portion of its Bitcoin (BTC) holdings as collateral. In keeping with Argo, the proceeds of the loans in addition to money raised from earlier funding rounds can be used to develop its mining operations in Texas and meet present working prices.

“This settlement permits Argo to safe aggressive phrases on a mortgage facility whereas additionally permitting us to proceed to HODL our Bitcoin,” stated Argo CEO Peter Wall.

As a result of the mortgage is partially backed by BTC, Argo may benefit by HODLing its crypto and seeing if the worth will improve by the point the mortgage is due in December. Wall advised Cointelegraph in March he receives his wage from Argo completely in Bitcoin, and as of the top of Might, the corporate reported it held 1108 BTC — greater than $40 million — having mined 716 cash in 2021.

Primarily based in the UK, Argo has been getting ready to construct a knowledge heart in West Texas for a while. In March, the agency introduced that it had secured a 320-acre plot of land which it deliberate to make use of for the development of a 200-megawatt crypto mining facility. On the time, Wall cited the state’s low-cost renewable power in addition to its openness to innovation in new applied sciences as a part of the explanation for the transfer.

Associated: Argo Blockchain buys 320-acre land plot in Texas to develop mining operations

Argo’s announcement comes as crypto corporations in the UK are dealing with seemingly stricter necessities from the nation’s Monetary Conduct Authority, or FCA. The regulatory physique ordered main crypto change Binance to halt all regulated actions within the U.Ok. following a evaluate of its operations. This month, a minimum of 64 crypto and blockchain corporations that beforehand submitted filings for registration with the FCA have withdrawn their purposes.