New York Digital Investment Group (NYDIG) will provide a $70.6 million loan to British mining firm Argo Blockchain to purchase equipment for a new data center in Texas.

Funding update!

We are excited to announce a new $71m (£56m) loan agreement with @NYDIG_BTC. The funds will be secured by mining machines at our Helios facility. This undiluted debt financing will allow us to continue to organize Phase 1 at Helios. #ARB $ARBK pic.twitter.com/4ogWQCF5kP

— Argo (@ArgoBlockchain) May 4, 2022

The agreement was signed by the companies’ subsidiaries NYDIG ABL LLC and Argo Helios LLC. The annual interest rate of the loan is 12% and the maturity date is August 2024.

The purchased equipment will be the collateral for the loan.

“We are delighted to receive this additional, non-dilutive financing that will enable us to equip the Helios facility in the first phase. NYDIG understands the financial needs of major bitcoin miners and we are delighted to continue working with them for further growth,” said Peter Wall, CEO of Argo Blockchain.

On May 5, the firm announced the launch of a data center in Dickens County, Texas. In the first phase, the capacity of the plant will be 200 MW. Potentially, the business has access to 600 MW.

We are excited to announce the power and opening of Helios, our flagship Bitcoin mining facility in Dickens County, Texas! ⚡⚡⚡

Thanks to everyone who helped make this possible.

yeeeeeehaw! 🤠#ARB $ARBK pic.twitter.com/gIUIfv5z2o

— Argo (@ArgoBlockchain) May 5, 2022

Argo expects 20,000 Bitmain Antminer S19j Pro miners from Bitmain to be delivered and deployed on Helios from May to October 2022. The company bought the lot in September 2021.

According to the statement, the site is already installing similar devices from Core Scientific under an equipment exchange agreement.

Argo purchased a plot of land for the construction of a data center in Texas in March 2021. In June, the firm took out a $20 million loan from Galaxy Digital to develop the business. In September, the crypto merchant bank provided the firm with a new loan of $25 million.

For NYDIG, the loan agreement with Argo was not the first in the mining industry. The New York-based company has provided debt financing to firms such as Greenidge Generation ($108 million) and Iris Energy ($71 million).

Recall that at the end of 2021, Argo increased its revenue by 291% to $100 million.