Popular bitcoin miner Argo Blockchain has announced an additional loan from a subsidiary of New York Digital Investment Group (NYDIG) as part of Argo’s equipment financing agreement. The move will help Argo purchase mining equipment for its Helios facility in Dickens County, Texas.
Argo seeks additional equipment financing from NYDIG
As part of the financing, Argo will borrow up to $70.6 million from NYDIG, with interest rates set at 12%, the official press release said. The loan will be offered in allocation from April to July 2022. Following the development, Argo Chief Executive Peter Wall commented,
“We are delighted to have secured this additional non-diluted funding that will enable us to continue to fit Phase 1 of our Helios site. NYDIG understands the financial needs of bitcoin miners at large and we look forward to developing Argo.” Excited to continue working with them to execute and deliver on the next phase.
The latest development comes less than two months after the bitcoin miner signed an equipment financing agreement with the NYDIG subsidiary.
It also announced an 8.25% p.a. interest rate and $26.66 million in borrowing over a four-year period to recapitalize the purchase of electrical infrastructure equipment for the company’s flagship cryptocurrency mining facility in Texas. The focus was also on being able to “energize” the 200 megawatt (MW) Helios facility. In total, Argo has borrowed more than $97 million.
Argo’s Texas Facility
After facing intense criticism over energy-consuming mining equipment, the crypto mining industry has made a rapid shift towards building power plants that are environmentally responsible, even if a complete shift to renewable energy may take a few more years. Will take
Argo’s new 126,000-square-foot facility in West Texas will also be powered mostly by wind and solar power, as claimed by its chief executive. During the latest earnings call, Wall noted that 85% of its electricity is being derived from renewable energy, primarily wind. Mining operations at Helios are expected to begin this month.
In addition, Argo also disclosed raising approximately $40 million in unsecured debt in the last quarter of 2021 through the issuance of senior notes traded on the Nasdaq Global Select Market.
The company released the audited results for 2021, which demonstrated revenue of $100 million, a 291% increase over the previous year mainly due to the massive increase in bitcoin’s hash rate. Its EBITDA also grew by an astonishing 594% to $71 million by 2021.
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