Cryptocurrency

Galaxy Digital Issues A $20M Loan To Cryptocurrency Mining Firm Argo Blockchain

As the UK’s FCA continues to crack down on crypto-based firms, Argo Blockchain made the announcement about the new development and expansion in their mining operations.

Crypto giant Galaxy Digital accepted the request of granting a loan of around $20Million to UK-based crypto-farming firm Argo Blockchain to help aid its new mining location and data center in the city of Texas. Argo announced on Tuesday that they had successfully managed to take hold of nearly $19.4Million, adding 14Million Euros into the bank, with the rest of the agreed loan to be handed out by Galaxy Digital during a future time period of six months. Galaxy Digital plans to utilize some of its Bitcoin holdings as collateral. As per the agreement, Argo Blockchain will use the loan packs and the funds raised from previous funding events to boost the development of the new mining center and make up the construction cost.

CEO of Argo Blockchain, Peter Wall, stated that this new loan agreement would help the company to acquire certain important terms as well as enable the company to HODL all of its Bitcoin holdings. By the HODL technique, Argo can gain a lot of benefits as most of the loan requested from Galaxy Digital is somewhat backed by Bitcoin. Peter Wall also told reporters in an interview back in March that the current salary he receives comes in the form of Bitcoin, as the company continues to perform successfully mining operations, holding nearly 1,108 Bitcoin in its inventory. Argo has reportedly mined 716 Bitcoin just in 2021 alone and wants to increase the potential even further as their expansion project proceeds.

New Land and the FCA

The data center planned in Texas has been in partial development for a while now. Argo announced back in March that they had successfully managed to acquire 320-acres of land for its new mining facility. Peter wall had mentioned the reasons to move to Texas, highlighting the clean energy of the state as well as the freedom to develop new and innovative projects. The FCA of the UK is also one of the main issues, now recently banning Binance from operating countrywide, the FCA continuous to cause problems to crypto-mining firms hoping to operate in the UK.

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