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

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

Galaxy Digital has issued a $20 million loan to United Kingdom-based crypto mining company Argo Blockchain for building a data center in West Texas.

In a Tuesday announcement from Argo, the firm said it secured 14 million euros — roughly $19.4 million at the time of publication — in a six-month loan agreement from Galaxy Digital using a portion of its Bitcoin (BTC) holdings as collateral. According to Argo, the proceeds of the loans, along with cash raised from previous funding rounds, would be used to expand its mining operations in Texas and meet current operating costs.

“This agreement allows Argo to secure competitive terms on a loan facility while also allowing us to continue to HODL our Bitcoin,” said Argo CEO Peter Wall.

Because the loan is partially backed by BTC, Argo could benefit by HODLing its crypto and seeing if the price will increase by the time the loan is due in December. Wall told Cointelegraph in March that he receives his salary from Argo entirely in Bitcoin, and as of the end of May, the company holds a reported 1,108 BTC — worth more than $40 million — having mined 716 coins in 2021.

Based in the United Kingdom, Argo has been preparing to build a data center in West Texas for some time. In March, the firm announced that it had secured a 320-acre plot of land tha it planned to use for the
Source…