The public mining company Argo Blockchain has completed the acquisition of a new 320-acre site in West Texas, USA, which it plans to use to build a new 200NW cryptocurrency basket.
News of the planned acquisition did not appear until mid-February after Argo signed a letter of intent with DPN LLC in New York. Details of the agreement indicate that the acquisition has been completed at an initial price of $ 5 million, including the issuance of approximately 3.5 million new Argo shares to DPN shareholders. Another share capital payment of up to $ 12.5 million will be made upon completion of the milestones associated with the project.
A London-based cryptocurrency worker traded on the London Stock Exchange under the symbol ARB has so far used cheap hydropower in Quebec, Canada for cryptocurrency mining. In mid-January this year, the company raised new funds through a private placement from institutional investors to acquire new units and help finance the expansion.
CEO Peter Wall said the new location in Texas will give the company “access to some of what we believe is the cheapest renewable energy in the world, in a place where innovation in new technology is encouraged and stimulated.” In an email with Cointelegraph la Wall to:
“[The acquisition] gives Argo an excellent opportunity to expand our existing mining capacity very significantly. It also highlights the ability of miners in the United States to expand mining capacity to some of the most competitive electricity prices in the world. … ”
Cheap and unregulated energy production in Texas is one of the main factors influencing the state’s reputation, and is a popular jurisdiction for blockchain companies in the United States, where big names like Bitmain already operate.
In addition, a trade association called the Texas Blockchain Council was established in November 2020 with the aim of coordinating a “pool of blockchains” of state legislators to promote blockchain-friendly initiatives and legislation across the country.
Argo, which specializes in Bitcoin (BTC) and Zcash (ZEC) mining operations, plans to build a 200 MW mining operation over the next 12 months. After the acquisition, it will have access to up to 800 MW of power.
Asked by the Cointelegraph about the potential implications of a major power outage in Texas this winter, Wall said Argos “fully understands the challenges and opportunities in the Texas power grid,” but the company still believes this is a great place. build an object. ”
Argo reflects the bullish sentiment of cryptocurrency markets in 2021, and also revealed that Wall was reportedly the first listed CEO to take his entire salary out of bitcoin.