Argo Blockchain secures Galaxy Digital loan to build Texas mining pool

The publicly listed mining company Argo Blockchain has secured £14 million (~$19.4 million) in a six-month loan from Galaxy Digital, the crypto bank led by Mike Novogratz. It used bitcoin as collateral.

New RNS:

Argo is pleased to announce it has secured a £14 million ($20 million) loan agreement for a term of six months with @GalaxyDigitalHQ using a portion of the Company’s Bitcoin holding as collateral. #ARB $ARBKF

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— Argo (@ArgoBlockchain) June 29, 2021

According to the release, the loan, together with previously raised venture financing, will fund the construction of a data centre in West Texas and cover operating costs. The company noted that the Galaxy Digital deal will allow it to preserve corporate reserves in its primary cryptocurrency while expanding its mining operations.

“This agreement enables Argo to obtain competitive terms on a line of credit and to continue HODL-ing our bitcoins,” said the company’s chief executive Peter Wall.

Argo Blockchain’s shares are listed on the London Stock Exchange under the ticker ARB. At the time of writing the securities traded at £126.6 (~$175).

In March, Argo Blockchain acquired a land parcel spanning 185 football fields in Texas 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 the blockchain company DMG Blockchain Solutions, under which the parties would create a “green” mining pool.

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