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[Blockchain Today Reporter Kim So-yeon] Argo Blockchain, a listed mining company, purchased a new 320 acres of land in West Texas, USA, and plans to use it for the construction of a new 200 megawatt cryptocurrency mining facility.
The news of the planned acquisition was first announced in mid-February when Argo submitted a provisional agreement for DPN LLC in New York. According to the transaction details, the purchase was completed at an initial price of $5 million by issuing approximately 3.5 million shares of Argo to DPN shareholders. Additional shares worth up to $12.5 million will be released once critical steps related to the project are fulfilled.
Argo Blockchain has been using electricity from cheap hydroelectric power plants in Quebec, Canada for its cryptocurrency mining business to date. In mid-January, the company raised new funds separately with institutional investors, contributing to the purchase of new hardware and financial expansion.
In an interview with Cointelegraph, CEO Peter Wall, “The new Texas site will have access to some of the world’s most affordable renewable energies in regions that promote new technology innovation.”
“The purchase of the land gave Argo a great opportunity to significantly expand its current mining capacity. It also gave US miners the opportunity to develop mining capabilities using some of the world’s most competitive electricity rates,” he said. Explained.
Texas’ affordable, deregulated energy production opportunity is in fact one of the major contributors to its reputation as a popular borough among U.S. blockchain companies. Famous companies like Bitmain already operate here.
A trade association called the Texas Blockchain Commission formed the’Blockchain Caucus’ in November 2020, made up of state legislators. The committee aims to promote blockchain-friendly plans and legislation at the national level.
Focusing on Bitcoin (BTC) and Zcash (ZEC) mining, Argo plans to build a 200MW mining facility within the next 12 months. At the end of the purchase, up to 800MW of power will be available.
Responding to questions about the massive power outages in Texas this winter, Wall said, “Argo understands the challenges and opportunities of the Texas grid. “I think it’s a good place to build a facility.”
Meanwhile, CEO Argo Wall announced that he has become the first executive of a publicly listed company to receive full pay in Bitcoin, reflecting the strong atmosphere of the cryptocurrency market in 2021.