Argo Blockchain files for $57.5 million offering of secured notes to fund Texas mining facility

The company said it intends to use the proceeds for construction costs and rigs at its Texas crypto mining facility, expected to be operational in 2022.

United Kingdom-based crypto mining company Argo Blockchain will be funding part of the building and equipment of its planned 800-megawatt data center in West Texas through an offering of senior notes.

According to a Monday filing with the Securities and Exchange Commission (SEC), Argo plans to offer $57.5 million worth of 8.75% senior unsecured notes set to mature on Nov. 30, 2026. The company said it intends to use the proceeds for rigs at its Texas crypto mining facility as well as construction costs.

Argo broke ground on the 200 MW crypto mining facility in July, reporting the site would give the company “access to up to 800 MW of electrical power” for its future operations if it chooses to acquire and develop all available land. Cointelegraph reported on Friday that the facility could cost Argo anywhere between $1.5 billion and $2 billion, with the land already estimated at $17.5 million.

The company secured two multimillion loans from Galaxy Digital in June and September using its Bitcoin (BTC) as collateral to fund the site, which it plans to have up and running by mid-2022. CEO Peter Wall has cited Texas’ cheap renewable energy as part of the reason for the construction of the data center in the area, with the SEC filing stating that Argo expected more than 90% of its power would come from ”reliable, renewable power sources at a cost below $0.02/kWh.”

Related: Industrial Bitcoin mining breathes new life into tiny Texan town

Argo reported it had mined 167 BTC in October, and held 2,128 BTC — roughly $142 million — on its balance sheet as of Oct. 31. With the price of Bitcoin recently reaching an all-time high of more than $68,000, HODLing more of the crypto asset could prove to be profitable for the mining firm.