Argo Blockchain, the Bitcoin (BTC) miner, announced on May 4th that it will incur extra debt to purchase hardware for its major Texas site.
Argo Blockchain engaged in a set of loan contracts with the New York Digital Investment Group (NYDIG), the cryptocurrency-oriented lender. Argo Blockchain will be indebted to NYDIG for a total of $70.6 million. The loans are set to mature in approximately two years with a 12% interest.
Helios, Argo’s main mining plant in Dickens County, Texas, will be the recipient of the funds from the lender. The site’s first phase is underway and is scheduled to open in Q2 of this year.
In a press release, NYDIG’s Head of Mining Services, Josh Burandt, stated that the company plans to expand its cooperation with Argo Blockchain.
Helios, according to Argo, will be one of the greatest immersion-cooled Bitcoin (BTC) mines in the world when constructed. The company will submerge its mining rigs in a non-conductive substance to boost computer throughput and minimize temperature.
Helios construction started in July 2021, according to Argos. The facility is expected to cost the company between $1.5 billion and $2 billion until it finishes. According to Argo, Phase 1 of the plant will contain around 50,000 mining rigs and will sustain 200 megawatts of power. In addition, the facility has access to around 800 megawatts of electricity from a nearby powerhouse.
Since 2021, a wave of Bitcoin (BTC) miners have relocated to Texas due to favorable regulations and low electricity costs. The decision also comes after China, formerly the biggest cryptocurrency miner in the world cracked down on crypto mining in 2021.
Senator Ted Cruz and other politicians are also broadly supportive of Bitcoin (BTC) mining in Texas. Cruz believes in Bitcoin (BTC) and even owns tokens on his own wallet. Tesla just announced a deal to mine Bitcoin (BTC) with Blockstream and the Block, the CEO of which is Jack Dorsey. Tesla CEO Elon Musk just relocated the company to Texas, in order to reap the benefits of regulations that are far more favorable.