Argo Blockchain obtains $25 million in Bitcoin-backed loan from Galaxy Digital

Argo Blockchain has acquired Bitcoin from Galaxy Digital LP and mining companies (Bitcoin) As collateral.

According to one announcement The London Stock Exchange announced on Friday that the new Bitcoin-backed loan agreement totals 18.05 million pounds (approximately US$25 million).

As Cointelegraph previously reportedIn June, Argo reached a loan agreement backed by BTC with Galaxy Digital for US$20 million.

According to reports, the British-based Bitcoin miner will combine the two loans into one for a total amount of US$45 million.

As part of the agreement, Argo will use new capital inflows to support its expansion efforts in Texas.

In March, the company purchased a 320-acre plot of land in Texas. According to reports, the plot will Host a 200 MW Bitcoin mining facility.

By obtaining a loan backed by Bitcoin, Argo Blockchain is also able to increase its available capital without the need to liquidate the mined BTC.

If the bullish forecast of the bitcoin price at the end of the year is also proven correct, then the company can earn considerable gains by holding the amount of BTC, which means that less dollars are paid per bitcoin during the repayment process.

The company also stated that it is happy to continue its business relationship with Galaxy digital as a financing partner.

related: Crypto miner Argo Blockchain is “good for the climate” in terms of greenhouse gas emissions

In early September, British Investor Magazine Report Argo held 1,659 BTC on its balance sheet at the beginning of the month.

According to reports, the Bitcoin mining giant mined 206 BTC in August, bringing its total number of “coins” year-to-date to 1,314. At the current price of Bitcoin, Argo holds approximately $77 million worth of Bitcoin.

Argo’s expansion in the United States also shows the east-west hash rate migration after China cracked down on cryptocurrency mining in the summer. Several high-profile Bitcoin miners are now building larger production capacity in North America.