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Argo Blockchain files for $57.5 million offering of secured notes to fund Texas mining facility

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Argo Blockchain, a cryptocurrency mining firm located in the United Kingdom, will use an issue of senior notes to fund a portion of the construction and equipment for its planned 800-megawatt data centre in West Texas.

Argo proposes to sell $57.5 million in 8.75% senior unsecured notes. With a maturity date of November 30, 2026, according to a Securities and Exchange Commission filing dated Nov. 8. The funds will be used to purchase rigs and cover building expenditures at the company’s crypto mining facility in Texas.

Argo began work on the 200 MW crypto mining plant in July. Claiming that the location would provide the firm with “access to up to 800 MW of electrical power” for future operations. If it chose to buy and develop all accessible property. According to a storey published Nov. 5, the facility may cost Argo anything from $1.5-2 billion, with the property costing $17.5 million already.

Argo used its Bitcoin as collateral to get two multimillion-dollar loan

In June and September, the business used its Bitcoin (BTC) as collateral. In order to get two multimillion-dollar loans from Galaxy Digital to help fund the site. Which it hopes to launch by mid-2022. The SEC filing stated that Argo anticipated more than 90% of its electricity. In order to originate from “stable, renewable power sources at a cost below $0.02/kWh”. CEO Peter Wall highlighted Texas’ inexpensive renewable energy as one of the reasons for the data centre’s development in the area.

Argo said it mined 167 bitcoins in Oct. and had 2,128 bitcoins on its balance sheet at the month’s end, worth around $142M. The price of Bitcoin is recently reaching an all-time high of over $68,000. Thus, the mining company may be able to benefit from HODLing more of the cryptocurrency.

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