Argo Blockchain files for $57.5 Million in secured notes to finance Texas’ mining facility

The company stated that it plans to use the proceeds to pay construction costs and purchase rigs for its Texas crypto mining facility. It is expected to be operational by 2022.
Argo Blockchain, a crypto mining company based in the United Kingdom, will finance part of the construction and equipment of its proposed 800-megawatt data centre in West Texas using senior notes. According to a Nov.8 filing with the Securities and Exchange Commission Argo plans to offer $57.5million worth of 8.75% senior unsecured notes that mature on Nov. 30, 2026. According to the company, it plans to use the proceeds to fund rigs at its Texas crypto-mining facility and construction costs. Argo broke ground in July on a 200 MW crypto mining site. The company reported that the site would allow it to “access up to 800MW of electrical power” for future operations, if it decides to acquire all the land. Cointelegraph reported that the facility would cost Argo between $1.5-2 Billion and the land was already valued at $17.5 Million. The company used its Bitcoin (BTC), as collateral, to finance the site. It plans to have it up and running by mid-2022. The CEO Peter Wall cited Texas’ low cost renewable energy as a reason for building the data center in the region. According to the SEC filing, Argo estimated that more than 90% of its power would be generated from “reliable, renewable sources at a price below $0.02/kWh.” Related: Industrial Bitcoin mining breathes life into small Texas townArgo reported that it had mined 167 BTC in Oct. and that it had 2,128 BTC (roughly $142 million) on its balance sheet as per Oct. The price of Bitcoin has reached an all-time high at more than $68,000. HODLing more crypto assets could prove profitable for the mining company.

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