Publicly traded bitcoin mining company Argo Blockchain (ARB) is planning to acquire land in West Texas for a new mining facility.
- London Stock Exchange-listed Argo said Wednesday it has signed a non-binding letter of intent with New York-based DPN LLC to acquire 320 acres of land to build a 200-megawatt data center over the next 12 months.
- The cost of the acquisition would be $17.5 million, funded via the issuance and allotment to DPN of ordinary shares in Argo.
- Once the agreement is in place, $5 million worth of new ordinary shares will be issued to DPN, followed by a further $12.5 million of shares in installments as contractual milestones are met.
- "We are incredibly excited about this proposed acquisition,” said Peter Wall, CEO of Argo Blockchain. “It gives Argo tremendous control over its mining operations, as well as significant capacity for expansion.”
- The company will use a $100 million credit facility to construct the center and kit it out with miners.
- In choosing the Texas location, Argo has been able to secure access to some of the ”cheapest renewable energy worldwide,” Wall said.
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