The crypto mining company UK-based Argo Blockchain will finance part of the construction and equipping of its planned 800-megawatt data center in West Texas through a senior note offering.
According to a November 8 filing with the Securities and Exchange Commission, Argo plans to offer $ 57.5 million in senior unsecured notes worth 8.75% maturing on November 30, 2026. The company said it intends to use revenue for rigs at its Texas cryptocurrency mining facility, as well as construction costs.
Argo began construction of the 200 MW cryptocurrency mining facility in July, reporting that the site would give the company “access to up to 800 MW of electrical power” for its future operations if it chooses to acquire and develop all of the land available. Cointelegraph reported on Nov. 5 that the installation could cost Argo between $ 1.5 billion and $ 2 billion, and the land was estimated at $ 17.5 million.
The company secured two multi-million dollar loans from Galaxy Digital in June and September using its Bitcoin (BTC) as collateral to fund the site, which it plans to get up and running by mid-2022.. CEO Peter Wall has cited cheap Texas renewable energy as part of the reasons for building the data center in the area, and the SEC request indicates that Argo expects more than 90% of its energy to come from ” Reliable renewable energy sources at a cost of less than USD 0.02 / kWh. “
Argo reported which had mined 167 BTC in October and had 2,128 BTC, roughly $ 142 million, on its balance sheet as of October 31. With the price of Bitcoin recently hitting an all-time high of over $ 68,000, HODLing more BTC could prove profitable for the mining company.
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