Argo blockchain has secured a loan worth £14 million ($20M) from Galaxy Digital HQ. Argo is a cryptocurrency mining company listed on London Stock Exchange. The loan will help them to expand their West Texas data centre.
Argo said that the loan agreement is for six months with Galaxy Digital. They are using a portion of their Bitcoin holding as collateral.
In March, the firm acquired a 320-acre plot of land in West Texas. They planned to construct a 200-megawatt crypto mining facility on it.
Argo will use the $20M loan proceeds from Galaxy Digital to continue the expansion of the company’s data centre in West Texas. It will also help them to meet their operating cash flow requirements. As per Argo, the loan proceeds involve purchasing and holding digital assets on their balance sheet. And others invested in helping to build out the cryptocurrency ecosystem.
Argo could benefit from HODLing its crypto if the price increase by the time the loan due in December.
“We are delighted to work with GalaxyDigital as we pursue our growth plans and to form a solid relationship with them as financing partners said Argo CEO Peter Wall. “This agreement allows Argo to secure competitive terms on a loan facility while also allowing us to continue to HODL our bitcoin,”.
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