Crypto miner Argo Blockchain (ARB) has set off to borrow USD 70 million from one of the New York Digital Investment Group (NYDIG) to help fund their move to buy a new mining facility for Helios facility in Texas.
In March 2022, Argo, which has a market capitalization of USD 385 million, took another USD 26.6 million loan from NYDIG. This means that the total value of the loans taken from NYDIG will be USD 97.2 million. According to Peter Wall, the chief executive officer at Argo, the new non-dilutive funding will enable the mining company to continue fitting out Phase 1 of their Texas mining site.
Argo aims to ensure that the Helios mining facility will be able to run at 200 megawatts (MW) of electricity, but its full capacity can hit 800 MW. If they hit the peak, it would make the facility the biggest crypto mine on the globe.
The Terms and Conditions for the Loan
The loan facility announced on Wednesday will be repaid in eight batches starting from April to the end of July. Each of the tranches comes with an interest rate of 12%, which will mature in two years.
The loan that was offered to Argo in March came with an interest rate of 8.25% per year and a term of four years. By the close of 2021, Argo raised USD 40 million in unsecured debt through the issue of senior notes, which are traded on the NASDAQ Global Select Market, according to the report on their annual earnings.