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

Galaxy Digital has issued a $20 million loan to United Kingdom-based crypto mining firm Argo Blockchain for constructing an information middle in West Texas.

In a Tuesday announcement from Argo, the agency said it secured 14 million euros — roughly $19.4 million on the time of publication — in a six-month loan settlement from Galaxy Digital utilizing a portion of its Bitcoin (BTC) holdings as collateral. According to Argo, the proceeds of the loans, together with money raised from earlier funding rounds, could be used to increase its mining operations in Texas and meet present working prices.

“This settlement permits Argo to safe aggressive phrases on a loan facility whereas additionally permitting us to proceed to HODL our Bitcoin,” stated Argo CEO Peter Wall.

Because the loan is partially backed by BTC, Argo may benefit by HODLing its crypto and seeing if the value will improve by the point the loan is due in December. Wall informed Cointelegraph in March that he receives his wage from Argo totally in Bitcoin, and as of the tip of May, the corporate holds a reported 1,108 BTC — value greater than $40 million — having mined 716 cash in 2021.

Based within the United Kingdom, Argo has been getting ready to construct an information middle in West Texas for a while. In March, the agency introduced that it had secured a 320-acre plot of land tha it deliberate to make use of for the development of a 200-megawatt crypto mining facility. At the time, Wall cited the state’s low cost renewable vitality in addition to its openness to innovation in new applied sciences as a part of the explanation for the transfer.

Related: Argo Blockchain buys 320-acre land plot in Texas to increase mining operations

Argo’s announcement comes as crypto corporations within the United Kingdom are going through seemingly stricter necessities from the nation’s Financial Conduct Authority, or FCA. The regulatory physique ordered main crypto change Binance to halt all regulated actions within the U.Okay. following a evaluate of its operations. This month, not less than 64 crypto and blockchain corporations that beforehand submitted filings for registration with the FCA have withdrawn their purposes.