Argo Blockchain to Build a Mining Centre in Texas

The London Stock Exchange-listed mining company Argo Blockchain announced plans to buy land in Texas for the construction of a new data centre for Bitcoin mining.

1/ New RNS release:

Argo is pleased to announce it has entered into a non-binding LOI with DPN LLC to acquire 320 acres of land in West Texas with access for up to 800mw of power where Argo intends to build a 200mw mining facility in the next 12 months. #ARB $ARBKF#BTC

— Argo (@ArgoBlockchain) February 10, 2021

The company signed a letter of intent with the New York-based firm DPN. The document is formal and does not bind the parties to anything.

Argo Blockchain plans to acquire 320 acres (129.5 hectares) in West Texas with access to 800 MW of electricity. The area is roughly equivalent to about 185 football pitches.

The deal value will be $17.5 million, subject to the signing of the agreement. Argo Blockchain will issue new shares to DPN worth $5 million, with the remaining $12.5 million to be paid in installments as the contract’s obligations are fulfilled.

3/
Subject to entering into a definitive agreement and the satisfaction of related conditions, the overall price of this acquisition will be US$17.5M to be satisfied by the issue and allotment of new ordinary shares in Argo. #ARB $ARBKF#BTC

— Argo (@ArgoBlockchain) February 10, 2021

Over the course of the year, the mining company intends to build a 200 MW data centre on the new site. As part of the project, Argo Blockchain will secure a $100 million credit facility.

4/
As part of this project, Argo will also gain access to a pre-negotiated US$100 million credit facility at competitive rates. This will provide sufficient capital to build out the facility and further expand our mining fleet.#ARB $ARBKF

— Argo (@ArgoBlockchain) February 10, 2021

In 2019, Bitmain completed the construction of a mining centre with a capacity of 50 MW in Texas.

In the same year, the German company Northern Bitcoin agreed to merge with Whinstone US, which was building a Bitcoin farm spanning 57 football pitches in an American state.

In October 2020, Arcane Research noted the growing share of US-based miners in Bitcoin’s hashrate.

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