- Blockchain miner Argo Blockchain entered into a loan agreement worth £18.05 million with crypto investment bank Galaxy Digital LP.
- The company has put part of its Bitcoin holding as collateral for the loan.
LSE listed blockchain mining company Argo Blockchain (LON: ARB) entered into an £18.05 million loan agreement with a digital asset full service merchant bank Galaxy Digital LP to fund its green bitcoin mining plant in West Texas US.
Galaxy Digital LP has been founded by former Wall Street hedge fund banker and crypto investor and enthusiast Michael Novogratz.
Argo Blockchain’s (LON: ARB) share price performance
Argo was trading at GBX 138.50, up by 1.10 per cent on 10 September 2021 at 13:40 HRS GMT+1. The technology sectoral index, which it is a part of, was trading at 2,317.97, up by 0.40 per cent.
(Image Source: Refinitiv)
Argo’s market cap stands at £523.11 million, and its one-year return stands at a whopping 2,302.47 per cent as of 10 September.
Related Article: London-listed crypto miner Argo Blockchain files for $75M US IPO
Argo Blockchain’s (LON: ARB) loan agreement details
The miner already has an existing loan of £14 million with Galaxy Digital, which will be rolled on with the new loan agreement. The combined loan of the company now amounts to £32.05 million.
The maturity date of the new loan agreement is 29 October 2021. The company has put part of its Bitcoin holding as collateral for the loan.
The bitcoin mine located in West Texas is of 320 acres and will be more energy efficient. Earlier this year, Tesla founder Elon Musk had expressed concerns over Bitcoin’s environmental impact due to Bitcoin mining’s high energy use.
The news comes just days after El Salvador officially endorsed Bitcoin as a legal tender.
The recent introduction of Bitcoin as legal tender by El Salvador got off to a bumpy start after the digital currency dropped by over 18 per cent in a flash crash ahead of its launch before partly recouping its losses.
However, the move further cemented cryptocurrency and blockchain assets as a growing and key sector to watch as it has now entered the wider public’s consciousness.
Argo is thus well positioned to benefit from this rising attention towards Bitcoin and other cryptocurrencies.
Furthermore, risk averse investors who wish to invest in digital currency but want to stay away from the volatility of directly investing in crypto assets can do so by investing in Bitcoin related equity stocks such as Argo Blockchain.