- Galaxy Digital is offering this loan against Bitcoin as collateral.
- It will allow Argo to retain its current Bitcoin holding, whilst further expanding its mining operations.
- The loan has been secured for a duration of six months.
United Kingdom, June 29, 2021 /AlexaBlockchain/ – The crypto mining firm Argo Blockchain today announced that it has secured a £14 million ($20 million) loan deal for a term of six months with Galaxy Digital.
Galaxy Digital is offering this loan against Bitcoin as collateral.
Argo Blockchain said in a press release that the fund raised from the loan will be used, in conjunction with the funds raised previously, to continue the build out of the Company’s West Texas data centre and to meet the Company’s operating cash flow requirements.
It is a very calculated strategy from Argo. It will allow Argo to retain its current Bitcoin holding, whilst further expanding its mining operations.
Bitcoin prices are most likely to go upward in the next six months, so it is better to HODL. Moreover, the drop in mining difficulty in the short term means Argo’s monthly earnings will go up so they can afford to take out a short term loan whilst literally printing more money.
Peter Wall, Chief Executive of Argo, said: “We are delighted to work with Galaxy Digital LP as we pursue our growth plans, and to form a solid relationship with them as a financing partner. This agreement allows Argo to secure competitive terms on a loan facility while also allowing us to continue to HODL our Bitcoin.”
Amanda Fabiano, Head of Mining, and Luka Jankovic, Head of Lending, at Galaxy Digital, said: “Galaxy is committed to creating tailored financial solutions to support miners. We are happy to provide Argo capital financing and products allowing them to scale and evolve.”