Argo Blockchain to secure $70m loan from NYDIG to buy mining equipment

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New York Digital Investment Group (NYDIG) will provide the British mining company Argo Blockchain with a loan of $70.6 million to purchase equipment for a new data centre in Texas.

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Financing update!

We’re very excited to announce a new $71m (£56m) loan agreement with @NYDIG_BTC. The funds will be secured by mining machines at our Helios facility. This non-dilutive debt financing will enable us to continue fitting out Phase 1 at Helios. #ARB $ARBK pic.twitter.com/4ogWQCF5kP

— Argo (@ArgoBlockchain) May 4, 2022

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The deal was concluded by the subsidiaries of the companies — NYDIG ABL LLC and Argo Helios LLC. The loan will carry an annual interest rate of 12%, with a repayment date in August 2024.

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The collateral for the loan will be the equipment being purchased.

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“We are pleased to receive this additional, non-dilutive capital financing that will allow us to outfit the Helios facility in Phase 1. NYDIG understands the financial needs of large Bitcoin miners, and we are happy to continue working with it for further growth,” said Peter Wall, CEO of Argo Blockchain.

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On May 5, the firm announced the launch of the data centre in Dickens County, Texas. In the first phase the facility’s capacity will be 200 MW. Potentially the facility has access to 600 MW.

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We are thrilled to announce the energization and opening of Helios, our flagship Bitcoin mining facility in Dickens County, Texas! ⚡⚡⚡

Thanks to everyone who helped to make this possible.

Yeeeeeehaw! 🤠#ARB $ARBK pic.twitter.com/gIUIfv5z2o

— Argo (@ArgoBlockchain) May 5, 2022

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Argo expects that from May to October 2022, 20,000 Antminer S19j Pro miners from Bitmain will be delivered to and deployed at Helios. The company purchased a batch in September 2021.

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According to the statement, the site is already installing similar devices obtained from Core Scientific under an equipment swap agreement.

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The land for building the data centre in Texas Argo купила в марте 2021 года. In June the firm received for the development of the venture кредит в $20 млн от Galaxy Digital. In September the crypto-trading bank provided the firm новый заем на сумму $25 млн.

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For NYDIG the loan deal with Argo was not the first in the mining industry. The New York-based company provided debt financing to firms such as Greenidge Generation ($108 млн) and Iris Energy ($71 млн).

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As noted, Argo увеличила доход на 291% — to $100m in 2021.

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