Funding the Future: Argo’s Senior Notes Offering
In a savvy financial move, the UK-based Argo Blockchain has decided to fund part of its ambitious 800-megawatt data center in West Texas through a creative offering of senior notes. In a filing with the Securities and Exchange Commission, Argo announced plans to sell $57.5 million in 8.75% senior unsecured notes, maturing on November 30, 2026. This isn’t your average bake sale; these funds are earmarked for both state-of-the-art mining rigs and the construction costs of the facility.
Construction and Capacity: A Texas-Sized Opportunity
Argo’s new venture isn’t just big in scale, it’s big in potential. Having broken ground on their 200 MW crypto mining facility back in July, the company has eyes on expanding to a whopping 800 MW of electrical power for its operations. With an estimated total project cost between $1.5 billion and $2 billion, investors may need to hold onto their wallets—especially since the land alone has been pegged at $17.5 million!
Funding the Fuel: Loans and Power Sources
In a double-header of financing, Argo has secured multimillion-dollar loans from major player Galaxy Digital, utilizing Bitcoin as collateral. With these funds, the company aims to get the site up and running by mid-2022. CEO Peter Wall has underscored Texas’ abundant renewable energy—expected to comprise over 90% of their power supply—as one of the main motivators for the site selection. Score one for sustainable practices, folks!
Mined Gains: BTC Holdings on the Rise
October has been fruitful for Argo, as they reported mining 167 BTC during the month. But the real treasure lies in their balance sheet, where a whopping 2,128 BTC—valued at around $142 million—sits. With Bitcoin recently hitting a dizzying height of over $68,000, the company’s decision to hold onto more of this digital gold could prove lucrative in the long run.
The Bigger Picture: Crypto Mining’s Role in Texas
The operation hasn’t just been a boon for Argo; it’s also revitalizing the local community in Texas. As the industrial Bitcoin mining wave rolls through, tiny towns are finding new life and opportunity, similar to that classic “rags to riches” tale. Relying on cheap energy and innovative financing, Argo’s Texas data center is set to redefine not just their corporate future but also the landscape of cryptocurrency mining in the Lone Star State.
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