Argo Blockchain proposes plans for a new 200MW facility in Texas

Argo Blockchain proposes plans for a new 200MW facility in Texas

The move is expected to offer Argo significant control over its mining operations as well as enhanced capacity in the region

Expanding its portfolio in the cryptocurrency niche, London-based blockchain company, Argo Blockchain PLC has announced plans to set up a 200MW facility in southern region of U.S. (Texas). Sources close to this announcement state that Agro has entered into a non-binding LOI (letter of intent) with DPN LLC to acquire 320 acres of land in West Texas.

The purchase is slated to cost Agro $17.5 million, with the company planning to finance these funds via new shares allocated to DPN upon fulfillment of certain conditions. To elaborate, upon signing the definitive agreement, Argo Blockchain will be issuing $5 million worth of new shares to DPN, while the balance shares of $12.5 million will be issued in installments based on contractual milestones.

Apparently, the land has accessibility to over 800MW of electrical power. That being said, Argo aims to construct a 200MW digital asset mining facility in a year as well as plans to take a $100 million pre-negotiated loan to construct the Texas facility and enhance its mining capacity.

Peter Wall, CEO of Argo Blockchain, mentioned that their firm is elated by this newly proposed acquisition as it not only gives Argo significant control over its mining ops but also the capacity to expand further. Mr. Wall added that Agro can secure access to some of the cheapest renewable energy in Texas that is renowned for innovations in new technologies.

Reports claim that the deal is subject to shareholder votes. In a general meeting to be held on this matter, Agro shareholders are expected to be asked to approve the allotment and issue of further new shares to raise equity to fund the down payment on the credit facility as well as issue new shares to DPN LLC.

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