Argo Blockchain Plc, a London-based publicly traded crypto mining company, has announced that it has secured a £ 14 million ($ 20 million) loan from Galaxy Digital.
As announced by the company, the loan will last six months and will aid the company in its expansion efforts without selling its current Bitcoin holdings.
According to the company, the loan facility will bolster previous funds the company has raised and build a new data center in West Texas. The company also aims to use the loan proceeds to meet operating cash flow needs. The company deposited its bitcoin assets as collateral for the loan.
“We look forward to working with you @GalaxyDigitalHQ as we pursue our growth plans and develop a solid relationship with you as a financing partner, ”said Peter Wall, Chief Executive Officer of Argo Blockchain. “This agreement enables Argo to secure competitive terms on a credit facility while still holding our Bitcoin HODL.”
HODLing its Bitcoin holdings is essential as the market is currently experiencing a bearish downturn and sell-offs may not bring profitability at this point. Meanwhile, the company’s expansion into North America follows the Chinese government, which is enforcing a ban on all crypto-related activities, including mining.
The ban has resulted in the brain drain, and many industry advocates see this as an ideal time for industry stakeholders to take advantage of the current mining void to break into the ground. Expansion into North America and the crypto-friendly state of Texas show the company’s willingness to capitalize on trends in the ecosystem. The company had plans for this move before that when it recently launched the Acquisition 320 hectares of land to build the facility.
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