Argo borrows $70M from NYDIG to buy mining rigs for its Texas facility

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London-based block reward miner Argo Blockchain (NASDAQ: ARBK) has borrowed $70 million from New York digital asset investment manager NYDIG to buy mining rigs for its Texas facility.

In its filing with the U.S. Securities and Exchange Commission (SEC), Argo confirmed that its wholly-owned subsidiary Argo Helios had entered into additional loans under the company’s equipment financing agreement. NYDIG will loan the Texas-based unit $70.6 million for its flagship mining facility in Dickens County, Texas.

Argos, which is listed in London and on Nasdaq, will receive the loan in eight agreements, all with a 12% interest rate and a two-year loan term. The first instalment of $19.1 million was available on April 29, with $24.1 million available by May 31, $10.2 million by June 30 and the rest, just over $17 million, available by July 29.

This is the second equipment financing loan that Argo has taken from NYDIG. In March, the miner borrowed $26.6 million for its Argos Helios subsidiary at an 8.25% interest over four years. Just as with its latest one, the March loan was for its Dickens County facility. As per reports then, Helios anticipates the facility will be fully running in the first half of this year with 200 megawatts.

Argo CEO Peter Wall commented, “We are delighted to secure this additional non-dilutive funding which will enable us to continue fitting out Phase 1 of our Helios site. NYDIG understands the financial requirements of large-scale bitcoin miners and we are excited to continue working with them to execute and deliver on the next phase of Argo’s growth.”

Josh Burandt, the head of mining services at NYDIG said that his company was happy to finance the Helios mining project, saying the move will further his firm’s goal of “securing the [BTC] network and supporting the growth of the world’s leading [BTC] miners.”

NYDIG has continued to invest in the block reward mining industry at a time when the US has become globally dominant in the sector. In March, the firm loaned Australian miner Iris Energy $71 million in a similar equipment financing agreement.

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