Argo Blockchain, a London-based cryptocurrency mining company, has secured a $20 million loan agreement for a Texas crypto mining operation. The loan, termed at six months and collateralized by the company’s bitcoin holdings, will fund the West Texas data center and allows for operating cash flow requirements to be met.
The loan agreement was formed with Galaxy Digital LP, a New York-based “financial services and investment innovator in the digital asset, cryptocurrency, and blockchain technology sector.” Michael Novogratz heads Galaxy Digital.
This development showcases another significant investment and bullish stance for West Texas and its sprawling data centers attracted by renewable-generated electricity and favorable regulation.
To understand why Texas is “Bitcoin mining’s new Mecca” and how energy grids can be balanced by Bitcoin and renewables, check out this podcast hosted by Compass, featuring Lee Bratcher and Nathan Nichols of the Texas Blockchain Council.
The data center to be built by Argo Blockchain in West Texas is on a 320-acre plot of land with access to 800 megawatts of electrical power, most of which will be derived from renewable sources.
Other crypto mining companies invested in West Texas, listed in no particular order, include Bitmain, Blockcap, Compute North, Layer 1, Riot Blockchain, Great American Mining, and Whinstone.
Argo Blockchain trades on the London Stock Exchange under the ticker: ARB and the OTCQX Best Market in the United States under the ticker: ARBKF.
If you would like to learn more about how bitcoin is mined, click here.