Argo Stock Jumps As It Celebrates Opening Of Texas Bitcoin Mine

  • Argo Blockchain stock is up as much as 10% after it says its new major mine in Texas is ready to generate cryptocurrency next week.
  • The London-based company has borrowed nearly $100 million from NYDIG in the past few months to acquire mining rigs for the site.

Argo Blockchain says the new crypto facility in Texas is fully active and ready to start mining next week.

Argo is celebrating this milestone with a launch event at the facility on Thursday afternoon. The London-listed company’s stock was up 10% on the announcement, and is currently about 7% higher than its previous close.

Helios, a 320-acre Dickens area, will act as Argo’s flagship bitcoin mining operation going forward. Argo has two smaller facilities in Quebec.

Argo projected costs of up to $2 billion to acquire Helios online last November, funded by debt offerings and offloading some of the bitcoins it mines each month.

In fact, a $70 million loan from crypto provider NYDIG was breached on Wednesday, and Argo will use the cash to acquire more mining rigs — bringing the total loan to more than $97 million. Argo has a market capitalization of approximately $370 million.

“I am deeply grateful to everyone involved in the planning and implementation of Helios,” CEO Peter Wall said in a statement. We started construction of the facility in July 2021, and it is a huge achievement to have the site start mining operations in less than 12 months.

The British company said that 20,000 Bitmain S1PJ Pro mining rigs purchased last September are still being delivered and installed. Argo will continue to receive and install Bitmain hardware in batches between May and October this year but has not specified how many rigs are already on site.

Argo also signed a different deal with a colleague at mining organization Core Scientific in March, which sees the two companies exchanging thousands of ASICs. Argo intends to replace the less powerful Antminer S9s – which were at Core Scientific – with more Bitmain S1PJ Pro hardware.

Some Core Scientific platforms have already been installed, and the rest will be delivered and set up throughout July. Argo will also be one of the first companies to receive Intel’s new mining chips, which have been linked to being more efficient than some of the off-the-shelf ASICs currently available.

Currently, Argo has 1.605 Exahs per second (EH/s), which is about 0.7% of the Bitcoin hash rate. Marathon Digital Holdings, the largest cryptocurrency miner by market capitalization, held 3.9 EH/s as of March – more than double Argo’s current capacity.

Over the next few years, Argo says its new site will eventually harness 800 megawatts of electricity. That would exceed the 750 megawatts planned to flow through Riot Blockchain’s Texas rival site in Rockdale, about 350 miles away.

Argo’s Helios Argo will be content with just 200 megawatts for now, a fifth of its target energy expenditure. The company believes this will continue to boost the overall maximum hash rate by 243% to 5.5 EH/s by the end of the year.

If that happens, Argo can handle a hash rate of more than 20 EH/s overall, which is about 9% of the current capacity of the Bitcoin network.


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  • David Kanellis

    blockworks

    editor

    David Canellis is an Amsterdam-based editor and journalist who has covered the crypto industry full-time since 2018. He focuses heavily on data-driven reporting to identify and map trends within the ecosystem, from bitcoin to DeFi, crypto stocks to NFTs and beyond. Contact David by email at da[email protected]

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