Cryptocurrency and Bitcoin (BTC) mining company Argo Blockchain will borrow $70.6 million from a subsidiary of the New York Digital Investment Group (NYDIG) to purchase new mining equipment for its Texas facility.
Bitcoin Mining Company’s Total Debt Rises to $97.2 Million
Argo Blockchain, which has a market capitalization of around $385 million, reported in March that it had borrowed $26.6 million from NYDIG. Thus, the total debt of the company increased to 97.2 million dollars.
Argo Blockchain expects the Helios facility in Dickens to operate at 200 megawatts of electrical power, but it has been learned that the capacity of the facility can be increased up to 800 megawatts. With this capacity, this facility could become one of the largest Bitcoin mining facilities in the world. As it is known, Argo Blockchain is one of the few companies to buy Intel’s new mining chips.
The loan, which was announced today, will be paid in eight tranches from the end of April to July, each with an interest rate of 12% and a maturity of approximately two years.
The loan, announced in March, was announced with an annual interest rate of 8.25% and a maturity of four years.
In Q4 2021, Argo Blockchain received another $40 million in unsecured debt by issuing senior securities traded on the Nasdaq Global Select Market, according to its annual earnings report.
As it is known, BTC mining companies have been looking for ways to expand their operations lately. Recently, Riot announced that it would invest in its new facilities by selling some of the BTCs it produced on Blockchain.
*Not investment advice.