London Inventory Trade-listed Argo Blockchain PLC (LSE: ARB) has introduced plans to open a brand new 200-megawatt facility in america’ southern area.
The block reward miner entered a non-binding letter of intent (LOI) with DPN LLC of New York to realize 320 acres of land in West Texas. The land buy will value $17.5 million, and Argo Blockchain will finance it by way of new shares to be allotted to DPN upon a definitive settlement and achievement of associated situations.
Within the press release, Argo’s CEO Peter Wall stated: “We’re extremely enthusiastic about this proposed acquisition. It provides Argo great management over its mining operations, in addition to a big capability for growth.”
“As well as, now we have been in a position to safe entry to among the least expensive renewable power worldwide in a location the place innovation in new applied sciences is inspired and incentivized,” he added.
As soon as the definitive settlement is signed, the phrases have Argo Blockchain issuing $5 million value of latest shares to DPN with the stability shares of $12.5 million to be issued in installments as they fulfill contractual milestones. Argo will base the worth of all the brand new peculiar shares on the 3-day VWAP (Quantity Weighted Common Value).
The land has entry to as much as 800-megawatts {of electrical} energy. Argo goals to construct a brand new 200MW digital forex mining facility within the subsequent 12 months. Argo additionally stated it plans to take a $100 million “pre-negotiated” mortgage to construct out the Texas facility and develop its mining fleet.
The deal remains to be topic to a shareholder vote. Argo will convene a common assembly at which its shareholders shall be requested to approve the allotment and subject of (a) the brand new shares to DPN LLC and (b) the difficulty of additional new shares to boost fairness to fund the down fee (or deposit) on the credit score facility.
See additionally: TAAL’s Jerry Chan presentation at CoinGeek Stay, The Shift from Bitcoin “Miners” to “Transaction Processors”
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