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Shares of Argo Blockchain PLC (LON: ARB) rallied 13% after the crypto mining company revealed that it now owns 320 acres of land in West Texas, USA, after completing the acquisition of DPN LLC, a New York company that owns the land.
Argo had signed a letter of intent to acquire DPN LLC in February and today’s announcement marks the successful end of the transaction.
The crypto-miner said that the deal gives it access to 800 megawatts (MW) of electrical power, mostly generated from sustainable energy sources. It intends to build a 200MW crypto mining facility on the land.
Argo noted that building a crypto mining facility on the site would provide it with some of the world’s lowest-cost electricity rates since the energy is generated from renewable sources.
The crypto mining company has been on a roll this month after reporting a significant jump in bitcoin mining figures for February last week, followed by today’s announcement.
Argo paid an initial price of $5 million by issuing and allocating 3.5 million new shares to DPN LLC shareholders with a further payment of up to $12.5 million in shares due after attaining certain milestones outlined in the purchase agreement.
The new shares issued will debut on the London Stock Exchange on March 11, 2021.
Peter Wall, Argo Blockchain’s CEO, said: “Argo's purchase of land in Texas represents a significant milestone for the Company and is a cause for celebration. It not only gives us greater control over our mining operations but also the ability to meaningfully expand our mining capacity on a large scale. We now have access to some of what we believe is the cheapest renewable energy worldwide, in a location where innovation in new technologies is encouraged and incentivised.”
Argo Blockchain share price.
Argo Blockchain shares surged 18.18% to trade at 260p after rising from Friday’s closing price of 220p.
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