Argo Blockchain has secured over $70 million in loans to ramp up production in its new Bitcoin mining operation in Dickens County, Texas.
The company is borrowing an aggregate principal amount of $70.6 million from New York Digital Investment Group (NYDIG) for Helios, the company’s flagship crypto mining operation in the Lone Star state.
This is the second 8-figure loan that Argo has taken out from NYDIG in the last month. In March, the firm, which has a $385 million market cap, took out $26.6 million in debt from NYDIG, putting their total borrowing spree from NYDIG at $97.2 million.
Peter Wall, Chief Executive of Argo, said: "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, Head of Mining Services at NYDIG, said: "NYDIG is pleased to offer additional financing to Argo to complete the next phase of growth for their Helios site. This partnership will help further NYDIG's goal of securing the bitcoin network and supporting the growth of the world's leading Bitcoin miners. We are happy to support the growth of Argo's state-of-the-art Texas facility, and we look forward to growing the partnership across verticals."
Last week, Argo revealed it was raising its 2022 hashrate guidance by nearly half, from 3.7 exahash per second (EH/s) to 5.5. To do so, the company said it would be utilizing the new ASIC chips from Intel.
“With our mining operations at Helios expected to commence in May, along with the development of custom mining machines using Intel’s next-generation Blockscale ASIC chips, Argo is well-positioned to continue its growth with a focus on delivering for our shareholders,” CEO Peter Wall said in a statement. During an earnings conference call, Wall noted that about 33% of the projected hashrate will come from Intel-powered mining rigs.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.