Argo Blockchain offers $57.5M in senior notes to fund Texas mining site

Argo Blockchain (LSE: ARB) is seeking to raise $58 million from the sale of senior notes to finance its Texas block reward mining site. The company plans to channel the funds towards procuring mining rigs as well as shouldering construction costs in what could be a multi-billion mining facility.

Argo has been seeking to scale up its BTC mining activities and identified Texas as the ideal location for expansion. Citing the state’s affordable renewable energy as a key reason behind its decision, the U.K.-based and London-listed miner is building a mining facility that will access up to 800MW of power.

In a filing with the U.S. securities regulator, Argo revealed that it’s set to offer unsecured senior notes in the hopes of securing $57.5 million for the project. The notes will mature in November 2026 with an interest rate of 8.75%.

The firm will use the funds to construct the facility. It will also channel some of the funds to purchasing mining rigs, potentially acquiring or investing in businesses involved with digital currencies and for general corporate purposes, it revealed. 

Argo has already taken multi-million dollar loans from Mike Novogratz’ investment firm Galaxy Digital to fund the project. The latest was in September 2021 when it received $25 million. A few months prior, it had secured $20 million. The combined $45 million in loans from Galaxy Digital have been collateralized by the miner’s BTC reserves, giving it a capital infusion without having to liquidate its speculative tokens.

Argo’s latest fundraising efforts come just days after it had to reveal previously-undisclosed details about its Texas facility. Following an information leak, the company announced that the facility could cost up to $2 billion to construct. There have also been claims that the company overpaid 100x for the acquisition of the Texas land and allegedly lied to investors for months before being busted and forced to own up to its lies.

Watch: CoinGeek New York presentation, A Study of Bitcoin & Blockchain Energy Consumption

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