Argo Blockchain (LSE: ARB) will work with ePIC Blockchain, a Canadian blockchain hardware manufacturer, to design and build crypto mining rigs using Intel's new second-generation bitcoin mining chips, Argo said Tuesday.
The announcement comes as Argo's stock has been sliding on the London Stock Exchange over the past six months, with other publicly-traded miners experiencing a similar downturn as bitcoin has declined sharply in value and margins have tightened. Even though Argo upgraded its hashrate outlook for the year in April, it saw a 25% drop in bitcoin mined in May.
The ePIC partnership is an extension of a 2021 deal in which Argo Blockchain agreed to buy $8 million worth of ePIC's mining rigs, CEO Peter Wall said in a taped message posted on Argo's YouTube channel on Tuesday.
Wall compared building custom mining machines to buying a Dell computer as opposed to an Apple MacBook, saying it's cheaper on a dollar per terahash basis and allows Argo to have granular control of the rigs.
"It's a game changer," the CEO said in the video.
Intel's mining semiconductors could break an effective duopoly on the mining rig market in which two manufacturers – Bitmain and MicroBT – reign supreme.
Block (SQ), Griid Infrastructure and Hive Blockchain (HIVE) are set to be the first customers for Intel's new mining chips.
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