The crypto mining company The British Argo Blockchain will finance part of the construction and equipment of its planned 800-megawatt data center in West Texas through a senior note offer.
According to a filing with the Securities and Exchange Commission on November 8, Argo plans to offer $ 57.5 million in senior unsecured notes valued at 8.75% with a maturity date of November 30, 2026. The company said it intends to use the proceeds on rigs in its cryptocurrency mining facility in Texas, as well as construction costs.
Argo began building the 200 MW cryptocurrency mining facility in July and reported that the site would give the company “access to up to 800 MW of electrical power” for your future operations if you choose to acquire and develop of all available plots. Cointelegraph reported Nov. 5 that the Argo installation could cost anywhere from $ 1.5 billion to $ 2 billion, and the country was valued at $ 17.5 million.
The company secured a $ 2 million loan from Galaxy Digital in June and September using its Bitcoin (BTC) as collateral to fund the website, which is expected to be operational by mid-2022.. CEO Peter Wall has cited cheap renewable energy from Texas as the reason for building the data center in the area, and the SEC filing shows that Argo expects more than 90% of its energy to come from “reliable renewable energy sources at a lower cost” than $ 0.02 / kWh “.
Argo reported which had mined 167 BTC in October and had 2,128 BTC, around $ 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.