On Wednesday, Bitcoin mining company Argo Blockchain said it would take on credit to finance the purchase of the equipment needed for its flagship Texas facility in Texas.
The company signed a set of loan agreements with crypto-focused lending institution New York Digital Investment Group (NYDIG). The latter will offer Argo $70.6 million in loans. The interest rates for the loans will be 12.5% and are due to mature within two years.
The money will go toward HeliosArgo’s main mining facility in Dickens County, Texas. Phase 1 of the site is currently under construction and is scheduled to start operating in the second quarter of 2022.
In a press statement, Josh Burandt, Head of Mining Services at NYDIG, said that NYDIG is planning to increase its relationship with Argo.
Argo’s Helios is believed to be among the top Bitcoin mines:
Argos stated that, when it is finished, Helios will be among the most significant “immersion-cooled” Bitcoin mines in the world. To increase servers’ performance and decrease temperatures, the company will submerge its mining servers in the non-conductive coolant.
Argos began constructing Helios in July 2021. Helios is expected to cost the company $1.5 billion and $2 billion.
The plant’s first phase will comprise about 50k mining equipment and will provide 200 megawatts of electric power, Argo said. The site is also connected to approximately 800 megawatts of fuel from a nearby substation.
Texas emerges as a Bitcoin mining Mecca:
The ease of regulation and low-cost electricity has led to many Bitcoin miners relocating to Texas from the beginning of last year. The move also follows China which was once the world’s largest crypto mining company, banned the practice last year.
Texas lawmakers like Senator Ted Cruz are mainly for Bitcoin mining within the state. Cruz is a strong advocate for Bitcoin and holds personal tokens.
Tesla Bitcoin Miner:
Electric automobile maker Tesla joined a partnership to mine Bitcoin through Blockstream and Jack Dorsey’s Block. Tesla chief Elon Musk recently relocated the company to Texas to comply with better laws.
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