Publicly listed mining firm Argo Blockchain has finalized its acquisition of a brand new 320-acre land plot in West Texas in america, which it plans to make use of for the development of a new 200-megawatt cryptocurrency mining facility.
Information of the deliberate acquisition first broke in mid-February after Argo entered right into a letter of intent with DPN LLC of New York. Particulars of the deal point out that the acquisition was accomplished at an preliminary worth of $5 million, glad by the difficulty of roughly 3.5 million new shares of Argo to DPN shareholders. An additional fee of shares value as much as $12.5 million will happen as soon as milestones associated to the mission are fulfilled.
The cryptocurrency miner, which relies in London and trades on the London Inventory Change below the ticker ARB, has till now tapped low cost hydroelectric energy in Quebec, Canada for its cryptocurrency mining operations. In mid-January, the corporate raised contemporary funds by way of a non-public placement with institutional buyers in an effort to buy new {hardware} and contribute towards financing its growth.
Chief govt Peter Wall has stated that the brand new web site in Texas will present the agency with “entry to a few of what we imagine is the most affordable renewable power worldwide, in a location the place innovation in new applied sciences is inspired and incentivised.” In correspondence with Cointelegraph, Wall added:
“[The acquisition] offers Argo with a wonderful alternative to make a really vital growth to our present mining capability. It additionally highlights the alternatives for miners throughout the US to construct out their mining capabilities at a few of the best electrical energy charges globally.”
Low cost, deregulated power manufacturing in Texas is certainly one of many key elements contributing to the state’s rising fame as a popular jurisdiction for blockchain firms in the U.S., with well-known names like Bitmain already operating there.
A commerce affiliation known as The Texas Blockchain Council was, furthermore, formed again in November 2020 with the goal of coordinating a “Blockchain Caucus” of lawmakers within the state legislature to advertise blockchain-friendly initiatives and laws at a state stage.
Argo, which focuses on mining Bitcoin (BTC) and Zcash (ZEC), plans to assemble its 200MW mining facility throughout the subsequent 12 months. Following the acquisition, it would have entry to as much as a complete of 800MW {of electrical} energy.
In response to Cointelegraph’s query concerning the potential implications of the latest, high-profile energy blackouts in Texas this winter, Wall stated that Argos “perceive[s] absolutely the Texas energy grid challenges and alternatives” however that the corporate nonetheless “suppose[s] it’s an ideal place to construct a facility.”
Reflecting the bullish temper of the cryptocurrency markets in 2021, Argo additionally not too long ago revealed that Wall has ostensibly turn out to be the primary govt of a publicly traded firm to take their entire salary in Bitcoin.
