Cryptocurrency Miner Argo Blockchain has entered into LOI with DPN LLC of New York to build a massive 200 MW mining facility in the hub of Texas.
A news publication on coindesk stated that global cryptocurrency mining company Argo Blockchain is entering into a Letter of Intent (LOI) with DPN LLC of New York. The LOI is for acquiring more than 300 acres of land in West Texas, USA.
This is also to have usage of 800-megawatts electrical power for building a new mining facility with a capacity of 200mw in the next 12 months. Argo has said the new facility in Texas could make use of the cheap and renewable energy.
Nick Vadera is a stock and crypto trader, entrepreneur, and Bitcoin mining investment consultant, had this to tweet on Argo Blockchain Plans New Bitcoin Mining Facility in Texas.
The publicly traded bitcoin mining company wants to receive electricity at a low cost. Besides, they want to use power through other renewable sources. Peter Wall, who is the CEO of Argo Blockchain, said that they are happy about the arrangement.
The acquisition cost would be close to $17 million and will be funded by the allotment to DPN of ordinary shares in Argo. Wall also added that the location was crucial for the blockchain too because innovation in new technologies is massively encouraged.
Texas location also has ample resources for ensuring that mining companies can have control of renewable energy that is cheap. Probably, this could be the main reason for Argo to choose land in West Texas, USA.
Argo can use a $100 million credit facility, a pre-negotiated one for competitive rates. The amount can immensely expand its mining expertise. They also plan on issuing a notice to their shareholders during the coming general meeting.
XMS Capital Partners LLC is the financial advisor to Argo Blockchain. They are handling the transaction and dealing. Argo Blockchain plc is one of the largest cryptocurrency mining companies in the world.
They use clean energy and are headquartered in London, UK.