Argo Blockchain is the only mining company listed on the London Stock Exchange, which announced on Wednesday that it plans to acquire real estate in Texas for mining purposes.
The company, which is based in Great Britain, operates a global data center that offers a cost-effective and consumer-friendly service for mining of leading cryptocurrencies.
The costs for the planned land acquisition amount to around $17.5 million. The acquisition of the property will take place via new shares. Once the agreement to purchase comes into force, the company will issue $5 million of new shares to New York-based DPN LLC. A further $12.5 million will then be paid out in installments once the contractual milestones are completed.
This latest announcement is likely to boost the share price further. After the share price of Argo Blockchain has risen enormously since 2021, the situation should continue to improve.
In this year alone the price rose by more than 170% and in the last 12 months, the share has also outperformed Bitcoin — during this period the price rose by around 1,800%. As a result of the announcement of the upcoming acquisition of the land, the price also rose by around 10%.
Obviously, the company’s rally is closely linked to increased interest in cryptocurrencies. Aside from operationally expanding its business, the company continued to state that it owns 501 bitcoins. Given the current Bitcoin exchange rate, the price is equivalent to around $2.2 million.
Argo Blockchain Buys 320 Hectares of Land for a New Mining Facility
The company will build a 200-megawatt data center on the recently acquired 320 hectares of land over the next 12 months. Energy costs, which are currently more than 10% cheaper than the average prices for the entire United States of America, were certainly also decisive for the situation in Texas. As a result, you can ultimately reduce some of the enormous energy costs that arise during mining at least a little.
Funding of $100 million will continue to be used for the construction of the mining facility itself. For this sum of money, Argo Blockchain will use a loan. After the facility is ready, the plant will supply Argo with electricity at ‘some of the lowest tariffs in the world’.
By the way, Argo Blockchain isn’t the first mining operator to set up its store in the state of Texas. Crusoe Energy System, SBI Holdings, and GMO Internet are a few of the companies that already provide mining operations there.
About Argo Blockchain in Brief
Argo’s business area extends to mining facilities in North America. Argo has directed its resources in search of adaptable and highly efficient data centers. The combination of inexpensive hydropower from North America and the best machines on the market should enable the company to continue to operate profitably even during a bear market.
The company currently has three systems and mines Bitcoin and Zcash with a total output of 35 megawatts. The new plant in Texas should therefore represent an important building block for the company, as it will expand the performance many times over.