Galaxy Digital Provides Argo Blockchain $20M Bitcoin-Backed Loan To Expand Crypto Mining Facility In Texas

What Happened: U.Ok.-based Bitcoin mining firm Argo Blockchain PLC (LON: ARB) announced on Tuesday that they had acquired a $20 million mortgage from Galaxy Digital Holdings Ltd (OTC:BRPHF) to construct out its Bitcoin mining facility in Texas.

Accoding to the six-month mortgage settlement, Galaxy Digital will maintain a portion of Argo’s Bitcoin (CRYPTO: BTC) as collateral.

“We are delighted to work with Galaxy Digital as we pursue our development plans, and to type a strong relationship with them as a financing associate,” mentioned CEO of Argo, Peter Wall.

Why It Matters: The proceeds of the mortgage might be used to fulfill working money necessities and to construct Argo’s knowledge heart in West Texas.

Earlier this yr, Argo announced that it had efficiently bought 320 acres of land in West Texas on account of buying DPN LLC of New York.

In the announcement, Argo mentioned the land would give them entry to as much as 800-megawatts {of electrical} energy, the place it meant to construct a brand new 200mw mining facility over the following 12 months.

Read additionally: Spiritus Becomes The First Car To Mine Cryptocurrency, Including Bitcoin And Dogecoin

“We now have entry to a few of what we imagine is the most affordable renewable power worldwide, in a location the place innovation in new applied sciences is inspired and incentivized,” mentioned Wall on the time.

The agency reported $18.5 million in mining income for the primary quarter of 2021 and a profitability and mining margin of 80%.

Price Action: Bitcoin was buying and selling at $33,449 on the time of writing, down simply 3.74% previously 24-hours.

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