Argo Blockchain secures $25 million loan from Galaxy Digital

Mining company Argo Blockchain has agreed a loan from Galaxy Digital, Mike Novogratz’s crypto bank, totaling £18 million (~$25 million). The funds will be used to expand the facility’s capacity in Texas, United States.

New RNS

Argo is pleased to announce that it has entered into a £18.05 million* (US $25m) agreement with a maturity date of 29 Oct 2021 with Galaxy Digital LP, using a portion of Argo’s BTC holdings as collateral.

*Exchange rate calculated at 9 Sept 2021.#ARB $ARBKF

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— Argo (@ArgoBlockchain) September 10, 2021

The maturity date of the loan is October 29, 2021.

The mined bitcoins will serve as collateral for the loan. In the first half of the year, the company mined 883 BTC. At that time, Argo Blockchain owned 1,268 BTC (~$58.5 million at current prices).

In June, as debt financing, the company raised £14 million from Galaxy Digital (~$20 million). The aggregate liabilities stood at £32.05 million (~$45 million).

In March, Argo Blockchain acquired in Texas land parcel covering 185 football fields for the construction of a Bitcoin mining data centre powered by renewable energy.

Earlier in the month, the company signed a memorandum of understanding with DMG Blockchain Solutions, under which the parties will create a green mining pool.

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