Argo Blockchain updates on land purchase, issue of shares

Argo Blockchain PLC (LON:ARB) has provided an update regarding a previously announced plan to purchase 320 acres of land in West Texas, USA. The UK-listed cryptocurrency miner has now completed the purchase of DPN LLC and, as a result, has acquired the land associated with the company.

The acquisition – by way of a merger with a wholly owned subsidiary of Argo – gives Argo access to up to 800MW of electrical power and the company intends to build a new 200MW mining facility over the next 12 months. Argo believes the facility will provide them with some of the lowest electricity rates in the world, the majority from renewable sources.

Acquisition cost
The consideration for the acquisition was an initial price of $5mln, satisfied by the issue of 3.5mln new ordinary shares in Argo and allotted to the shareholders of DPN LLC. A further $12.5mln may be payable if certain contractual milestones relating to the facility are fulfilled.

“Argo’s purchase of land in Texas represents a significant milestone for the Company and is a cause for celebration. It not only gives us greater control over our mining operations but also the ability to meaningfully expand our mining capacity on a large scale,” said Argo Blockchain CEO Peter Wall.
“We now have 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,” Wall added.