Argo Blockchain Borrows $70M From NYDIG to Buy Mining Rigs
The miner is getting more machines for its Helios facility in Texas.
Crypto miner Argo Blockchain (ARB) is borrowing $70.6 million from a subsidiary of New York Digital Investment Group (NYDIG) to fund the purchase of mining equipment for its Helios facility in Texas.
Argo, which has a market cap of $385 million, announced another $26.6 million loan from NYDIG in March, meaning it has now borrowed $97.2 million from the firm.
Argo expects the Helios facility in Dickens County, which is near the Texas Panhandle, will operate at 200 megawatts (MW) of electricity, but has the capacity to be ramped up to 800 MW, which would make it one of the largest crypto mines in the world. The company is one of a few buying Intel’s (INTC) new mining chips.
The loan announced on Wednesday will be paid out in eight tranches from the end of April to July, each with an interest rate of 12% and maturing in about two years.
The loan announced in March came with an 8.25% per annum interest rate and a term of four years.
In the fourth quarter of last year, Argo raised $40.0 million in unsecured debt by issuing of senior notes that are traded on the Nasdaq Global Select Market, according to its annual earnings report.