BTC Miner Argo Borrowed $70M From NYDIG For New Rigs

The BTC miner Argo borrowed another $70 million from NYDIG to get more rigs and now it has a total of $97.2 million in loans so let’s read more today in our latest Bitcoin news.

Argo Helios is a Texas-based subsidiary of the London BTC Miner Argo Blockchain and now it secured a $70.6 million loan from NYDIG to buy more rigs. The new loan follows the announcement of a $26.6 million loan from NYDIG which the company borrowed at an 8.25% interest rate and brings the total amount from the investment manager to $97.2 million. According to the SEC filing, the agreement breaks the funding into eight separate loans with a 12% interest rate and a two-year term. The first $19 million is available on April 29 another $24 million by the end of May and $10 million at the end of June and the remaining $17 million by the end of July. The CEO Peter Wall noted:

“NYDIG understands the financial requirements of large-scale Bitcoin miners and we are excited to continue working with them to execute and deliver on the next phase of Argo’s growth.”

The company last month signed a contract to operate the Helios facility in Dickens County that is located in Northwest Texas and said it will have 200 megawatts of 800 total megawatts operational by the end of May and a month ago, the company said that it hired Navier Inc which specializes in setting up in mining to built the new facility. Argo trades on the NASDAQ under ARBK and had a rough start in 2022 while the stock lost about 35% since the year started. However, it is not alone. The rest of the publicly traded mining company cohort was sliding since the start of 2022 while RIOT is down by 70% and Bitfarms lost more than 37%.

In the full-year report for 2021, Argo reported $100 million in revenue, or a 291% increase over 2020. that was mainly because of the fact that Argo increased its hashrate, the Bitcoin price increased and the mining difficulty decreased. For its part, NYDIG made a huge push into the BTC mining category. In addition to financing the new facility, NYDIG loaned $71 million to Australian bitcoin miners Iris Energy and it even closed a deal to provide $81 million loans to Greenidge Generation to add a mining capacity to the controversial Dresden and New York Facility. NYDIG will act as a custodian for the mining company in Forth Worth, Texas.