Publicly traded miner Argo Blockchain has completed its acquisition of a new 320-acre site in West Texas, United States, which it plans to use for the construction of a new 200NW cryptocurrency mining facility.
News of the planned acquisition first appeared in mid-February, after Argo signed a Letter of Intent with DPN LLC in New York. The details of the deal indicate that the acquisition was completed at an initial price of $ 5 million, satisfied with the issuance of about 3.5 million new Argo shares to DPN shareholders. An additional share payment of up to $ 12.5 million will take place as soon as the project-related milestones are met.
The cryptocurrency miner, based in London and traded on the London Stock Exchange under the code ARB, has so far exploited cheap hydropower in Quebec, Canada, for its cryptocurrency mining operations. In mid-January this year, the company raised new funds through a private placement with institutional investors, in order to acquire new hardware and contribute to the financing of its expansion.
Chief Executive Peter Wall said the new site in Texas will provide the company “with access to part of what we believe is the cheapest renewable energy in the world, in a place where innovation in new technologies is encouraged and encouraged.” In correspondence with Cointelegraph, Wall added that:
“[The acquisition] offers Argo an excellent opportunity to make a very significant expansion in our current mining capacity. It also highlights opportunities for mining companies in the United States to develop their mining capabilities with some of the most competitive electricity rates in the world. ”
The production of cheap and unregulated energy in Texas is in fact one of the main factors contributing to the state’s growing reputation as a popular jurisdiction for blockchain companies in the United States, with well-known names like Bitmain already operating there.
In addition, a trade association called The Texas Blockchain Council was formed in November 2020, with the goal of coordinating a “Blockchain Caucus” of legislators in the state legislature to promote blockchain-friendly initiatives and legislation at the state level.
Argo, which focuses on mining Bitcoin (BTC) and Zcash (ZEC), plans to build its 200 MW mining facility in the next 12 months. After the acquisition, you will have access to a total of 800 MW of electricity.
In response to the Cointelegraph’s question about the possible implications of the recent high-profile power blackouts in Texas this winter, Wall said Argos “understands[s] the challenges and opportunities of the Texas power grid “, but that the company still” thinks[s] it is a great place to build a facility. “
Reflecting the bullish weather in the cryptocurrency markets in 2021, Argo also recently revealed that Wall has apparently become the first executive of a publicly traded company to receive all of his Bitcoin earnings.