Publicly traded mining company Argo Blockchain has completed the acquisition of a new 320-acre property in West Texas, USA, to be used to build a new 200NW cryptocurrency mining facility.
News of the proposed acquisition was first released in mid-February after Argo signed a letter of intent with DPN LLC of New York. Details of the transaction indicate that the acquisition was completed at an initial price of US $ 5 million, which was satisfied by the issuance of approximately 3.5 million new shares of Argo to DPN shareholders. An additional payment of up to $ 12.5 million in shares will be made once project milestones are met.
The London-based cryptocurrency miner, which trades on the London Stock Exchange under the ticker ARB, has so far used cheap hydropower in Quebec, Canada for its cryptocurrency mining activities. In mid-January of this year, the company raised funds through a private placement with institutional investors to purchase new hardware and help finance its expansion.
Chairman of the Board, Peter Wall, said the new Texas facility will give the company “access to some of what we believe to be the cheapest renewable energy in the world, in a location that encourages and incentivizes innovation in new technologies.” In agreement with Cointelegraph, Wall added that:
“”[The acquisition] offers Argo an excellent opportunity to significantly expand our current mining capacity. It also highlights the opportunities for US miners to expand their mining capabilities at some of the most competitive electricity tariffs in the world. “
Indeed, Texas’s cheap and deregulated power generation is a key factor in the state’s growing reputation as a popular jurisdiction for blockchain companies in the US, with names like Bitmain already operating there.
Additionally, a trade association called The Texas Blockchain Council was formed in November 2020 with the aim of coordinating a “blockchain caucus” of state legislators to promote blockchain-friendly initiatives and laws at the state level.
Argo, which is focused on mining Bitcoin (BTC) and Zcash (ZEC), plans to build its 200 MW mining facility within the next 12 months. After the acquisition, it will have access to a total of up to 800 MW of electrical energy.
In response to Cointelegraph’s question about the potential impact of the recent high-profile power outages in Texas this winter, Wall said Argos “understand”[s] fully embraces the challenges and opportunities of the Texas power grid, “but the company is still thinking”[s] It’s a great place to build a facility. “
Given the bullish sentiment in the cryptocurrency markets in 2021, Argo recently announced that Wall is allegedly the first manager of a publicly traded company to draw all of its salary in Bitcoin.