- Argo Blockchain shares surged as much as 10% after announcing that its new flagship mine in Texas will be ready to start generating crypto next week
- The London-based company has borrowed nearly $100 million from NYDIG in recent months to acquire mining assets for the site
Argo Blockchain says its new crypto facility in Texas is fully powered up and ready to start mining next week.
Argo will celebrate the milestone with a dedication ceremony at the facility on Thursday afternoon. The company’s London-listed stock rose as much as 10% following the announcement and is currently about 7% up from its previous close.
Dickens County’s 320-acre Helios property will serve as Argo’s flagship bitcoin mining operation. Argo has two smaller facilities in Quebec.
Indeed word broke of a $70 million loan from crypto services provider NYDIG on Wednesday, Argo will use cash to acquire more mining rigs — bringing the total loan to over $97 million. Argo’s market cap is around $370 million.
“I am extremely grateful to everyone involved in the planning and execution of Helios,” CEO Peter Wall said in a statement. “We began construction of the facility in July 2021 and it is a tremendous achievement that the site will begin mining operations in less than 12 months.
The British firm said the 20,000 Bitmain S1PJ Pro mining rigs purchased last September are still being shipped and installed. Argo will continue to receive and install the Bitmain machines in batches between May and October this year, but has not disclosed how many rigs are already housed at the site.
Argo also signed another act with fellow mining organization Core Scientific in March, where the two companies trade thousands of ASICs. Argo intends to swap out its less powerful Antminer S9s – which have been housed at Core Scientific – for more Bitmain S1PJ Pro machines.
Some of Core Scientific’s rigs have already been installed, with the remainder being delivered and set up throughout July. Argo will also be one of the first to receive Intel’s new mining chips, which are said to be more efficient than some off-the-shelf ASICs currently available.
Right now, Argo exercises 1.605 exahashes per second (EH/s), which is about 0.7% of Bitcoin’s hash rate. Marathon Digital Holdings, the largest crypto mining company by market value, groomed 3.9 EH/s as of March – more than double Argo’s current capacity.
Argo says its new site will eventually utilize 800 megawatts (MW) of electricity over the next few years. This would surpass the 750 MW planned to flow through rival Riot Blockchain’s Texas Side? site in Rockdale, about 350 miles away.
Argos Helios will initially manage with just 200 MW, a fifth of the targeted energy consumption. The company expects this to boost its overall max hash rate by 243% to 5.5 EH/s by the end of the year.
In this case, Argo could handle a total hash rate of more than 20 EH/s, which is about 9% of the current Bitcoin network capacity.
Argo Stock Jumps as it Celebrates Opening of Texas Bitcoin Mine is not financial advice.
Source: Crypto News Austria