It has been reported that the firm said it secured 14 million euros, around $19.4 million at the time of publication, in a six-month loan agreement from Galaxy Digital using a portion of its Bitcoin (BTC) holdings as collateral.
According to Argo, the proceeds of the loans, along with cash raised from previous funding rounds, would be used to expand its mining operations in Texas and meet current operating costs.
Peter Wall, the CEO of Argo, said:
“This agreement allows Argo to secure competitive terms on a loan facility while also allowing us to continue to HODL our Bitcoin.”
However, Argo could benefit by HODLing its crypto and seeing if the price will increase by the time the loan is due in December as the loan is partially backed by BTC. in March, Wall said that he receives his salary from Argo entirely in Bitcoin, and as of the end of May, the company holds a reported 1,108 BTC, worth more than $40 million, having mined 716 coins in 2021.
The report said that Argo has been preparing to build a data center in West Texas for some time. In March, the firm announced that it had secured a 320-acre plot of land that it planned to use for the construction of a 200-megawatt crypto mining facility. At the time, Wall cited the state’s cheap renewable energy as well as its openness to innovation in new technologies as part of the reason for the move.
Argo’s announcement comes as crypto firms in the United Kingdom are facing seemingly stricter requirements from the country’s Financial Conduct Authority (FCA). The regulatory body ordered major crypto exchange Binance to halt all regulated activities in the UK after a review of its operations.
Thus, in June, at least 64 crypto and blockchain firms that previously submitted filings for registration with the FCA have withdrawn their applications.