The Bitcoin mining behemoth has entered into another financing deal with Galaxy Digital, this time backed by bitcoin, as it seeks to expand its operations even further.
With the help of Galaxy Digital LP, Argo Blockchain has acquired yet another loan deal, this time with the mining firm’s Bitcoin (BTC) as collateral.
As announced on Friday by the London Stock Exchange, the new Bitcoin-backed credit deal is worth 18.05 million pounds (about $25 million), according to the release.
As previously reported by Cointelegraph, Argo had previously engaged into a BTC-backed loan deal with Galaxy Digital for a total of $20 million in June of this year.
According to reports, the Bitcoin miner based in the United Kingdom will consolidate both debts into a single loan worth a total of $45 million.
Specifically, as part of the arrangement, Argo will use the infusion of new funds to support its expansion efforts in the state of Texas.
In March, the company purchased a 320-acre tract of land in Texas, where it plans to build a Bitcoin mining complex capable of producing 200 megawatts of power.
Argo Blockchain is also able to grow its available capital by getting a Bitcoin-backed loan, avoiding the need to liquidate already mined Bitcoin.
The corporation may be able to make a considerable yield by “HODLing” the BTC total, which will result in paying fewer U.S. dollars per Bitcoin during the payback process if bullish estimates about the price of Bitcoin by the end of the year are also accurate.
As a result, the company expressed its joy in continuing its commercial partnership with Galaxy digital as a finance partner.
According to a story published earlier this month in the UK Investor Magazine, Argo held 1,659 BTC on its balance sheet at the start of the month.
Bitcoin mining behemoth Bitmain reportedly mined 206 BTC in August, bringing its year-to-date total to 1,314 “coins” (bitcoins). Argo currently has around $77 million in Bitcoin, based on the current Bitcoin price.
