Bitcoin mining company Argo Blockchain will raise US$57.5 million through senior notes

Bitcoin mining company Argo Blockchain filed a registration statement with the U.S. Securities and Exchange Commission (SEC) that the proposed public offering will expire on November 30, 2026, with a senior note interest rate of 8.75%.This company based in the UK plan A total of US$57.5 million was raised through the sale of bills to the public, provided in increments of US$25. They intend to use the funds to build Argo’s Texas encryption mining facility, which is designed to power 90% of its business through renewable energy, and is estimated to cost approximately US$2 billion.

Our mining strategy is to cost-effectively acquire and deploy the most advanced mining technology solutions in North American facilities that primarily utilize renewable and cheap electricity.

The company will also use the net proceeds “for general corporate purposes” and “potential acquisitions or investment in complementary businesses”, as they are exploring “a broader range of strategic initiatives for software and other technologies in the cryptocurrency and blockchain fields.”

With regard to this issuance, Argo has applied to list these notes on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “ARBKL”. If approved for listing, it is expected to start trading on the Nasdaq within 30 working days after the initial issuance of the notes.

this Record It is pointed out that Argo Blockchain completed its initial public offering of 8,525,000 American depositary shares in the United States in September, priced at $15,00 per share, and net income of approximately $114.8 million. Later this month, they held 1,836 Bitcoins and Bitcoin equivalents, “valued at approximately 58.7 pounds (79.5 million U.S. dollars) based on the price as of that date”, with a total income of 50.4 pounds (68.33 million U.S. dollars). For the nine months ending September 30, 2020, the growth rate of “over 14.9 GBP (20.2 USD)” was 238%.

Related Reading | Argo Blockchain obtains US$20 million loan through Galaxy Digital LP

Bitcoin mining revenue and strategy

Argo’s mining revenue increased by 32% in October to a total of 9.75 million U.S. dollars, and 167 bitcoins or equivalent bitcoins were mined, compared with 165 in September, with revenue of 7.59 million U.S. dollars. This month’s income was generated from approximately 84% of the Bitcoin mining deposit. The company reported that as of the end of October, a total of 1,646 bitcoins have been mined so far this year, and it has 2,128 bitcoins or its equivalent. They also announced a mining expansion, increasing its total production capacity by 220 PH/s, “making the company’s mining capacity 1.295 EH/s.” Recently, Argo Blockchain announced that they are investing in an 800 MW crypto mining facility in Texas, which may cost 150 to 2 billion U.S. dollars. It was built on 320 acres of land purchased for $17.5 million. Some people questioned Argo’s lack of clarity on the cost of mining facilities, but Argo announced estimated construction and equipment costs based on “many assumptions” and defended the investment.

Our investment in mining facilities is designed to significantly expand our mining capabilities and provide us with meaningful control over our mining operations. We are taking these steps as part of a broader strategy to transform our business from contracting and hosting mining machines in our facilities to owning and operating our facilities.

Related Reading | Bitcoin mining Vs.The world: BTC leads sustainable energy

Argo blockchain is listed NASDAQ Global Market, Its market value is approximately US$863 million.

Bitcoin price rose to over $68,000 on Tuesday | Source: BTCUSD transaction view

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