Publicly listed mining company Argo Blockchain has finalized its acquisition of a new 320-acre land plot in West Texas in the United States, which it plans to use for the construction of a new 200-megawatt cryptocurrency mining facility.
News of the planned acquisition first broke in mid-February after Argo entered into a letter of intent with DPN LLC of New York. Details of the deal indicate that the acquisition was completed at an initial price of $5 million, satisfied by the issue of roughly 3.5 million new shares of Argo to DPN shareholders. A further payment of shares worth up to $12.5 million will occur once milestones related to the project are fulfilled.
The cryptocurrency miner, which is based in London and trades on the London Stock Exchange under the ticker ARB, has until now tapped cheap hydroelectric power in Quebec, Canada for its cryptocurrency mining operations. In mid-January, the company raised fresh funds through a private placement with institutional investors in order to purchase new hardware and contribute toward financing its expansion.
Chief executive Peter Wall has said that the new site in Texas will provide the firm with "access to some of what we believe is the cheapest renewable energy worldwide, in a location where innovation in new technologies is encouraged and incentivised." In correspondence with Cointelegraph, Wall added:
"[The acquisition] provides Argo with an excellent opportunity to make a very significant expansion to our current mining capacity. It also highlights the opportunities for miners within the US to build out their mining capabilities at some of the most competitive electricity rates globally.”
Cheap, deregulated energy production in Texas is indeed one of the key factors contributing to the state's rising reputation as a popular jurisdiction for blockchain firms in the U.S., with well-known names like Bitmain already operating there.
A trade association called The Texas Blockchain Council was, moreover, formed back in November 2020 with the aim of coordinating a "Blockchain Caucus" of lawmakers in the state legislature to promote blockchain-friendly initiatives and legislation at a state level.
Argo, which focuses on mining Bitcoin (BTC) and Zcash (ZEC), plans to construct its 200MW mining facility within the next 12 months. Following the acquisition, it will have access to up to a total of 800MW of electrical power.
In response to Cointelegraph's question regarding the possible implications of the recent, high-profile power blackouts in Texas this winter, Wall said that Argos "understand[s] fully the Texas power grid challenges and opportunities" but that the company still "think[s] it’s a great place to build a facility.”
Reflecting the bullish mood of the cryptocurrency markets in 2021, Argo also recently revealed that Wall has ostensibly become the first executive of a publicly traded company to take their entire salary in Bitcoin.