Galaxy Digital Lends a $25 Million Bitcoin-backed Loan to Argo Blockchain

Kavya  |  Sep 11, 2021

Argo Blockchain, a worldwide pioneer in cryptocurrency mining, has recently announced that it has signed into an £18.05 million* (the US $25 million) Bitcoin-backed loan with Galaxy Digital LP, utilizing a part of the Company's Bitcoin holding as collateral, with a maturity date of 29 October 2021.

Galaxy Digital Provides Argo Blockchain With A $25 Million Bitcoin-backed Loan

According to a Friday statement by the London Stock Exchange, the new bitcoin-backed loan arrangement is worth 18.05 million pounds (about $25 million).

As previously reported, Argo previously engaged in a $20 million BTC-backed credit deal with Galaxy Digital in June.

The Bitcoin miner headquartered in the United Kingdom is said to be consolidating both loans into one for a total of $45 million.

As part of the arrangement, Argo will use the new money to assist its Texas development plans.

The business allegedly bought a 320-acre property piece in Texas in March to house a 200-megawatt Bitcoin mining operation.

Argo Blockchain can expand its accessible capital by getting a Bitcoin-backed loan without having to sell mined BTC.

If the company's bullish forecasts for Bitcoin's price by the end of the year come true, it may make a substantial yield by hodling the BTC amount, which means paying less US dollars per Bitcoin during the payback process.

The company also noted that it is excited to continue working with Galaxy Digital as a finance partner.

Argo Blockchain Gives An Upbeat Update On Mining In August

Earlier this month, UK Investor Magazine stated that Argo had 1,659 BTC on its balance sheet at the beginning of September.

According to reports, the Bitcoin mining behemoth mined 206 BTC in August, increasing its year-to-date total to 1,314 "coins." 

Argo now owns around $77 million in Bitcoin at the current pricing.

Argo's expansion into the United States is also symptomatic of the East-West hash rate shift that has occurred in the aftermath of China's crypto mining ban this summer. 

Several prominent Bitcoin miners are expanding their operations in North America.

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