Argo Blockchain is a leading world cryptocurrency mining firm located in North America. Rumors state that Argo will spend $1.5-2 Billion on a new cryptocurrency mining facility. Is this true? Did Argo confirm this?
Argo is a company that advocates for the use of renewable resources in mining and is a publicly-traded company on Nasdaq. Argo reported a decline in mining activities during April, which later rose by 122%. Despite the collapse during the fourth quarter (Q4), Argo plans to build a new mining facility.
Argo’s Information Leakage
After a private meeting, information leaked on Twitter (Deleted) about the company and its plan to build a new mining facility. Argo had no option but to confirm it.
It is true that the company plans to open a new mining facility, and Argo will spend $1.5-$2 Billion on a new mining facility. A breakdown of the cost is an 800-megawatt facility occupying large space in Texas.
Land and electricity alone are very costly, let alone the mining facilities. Using renewable energy is more costly, and this is what Argo’s aim is.
Argo Blockchain Affirms the Information
The information leak has forced the company to disclose its secret plan and other plans discussed in the meeting. Argo stated in a regulatory filing that its representatives met with Anthony Coyle, an equity portfolio manager, on 4 November.
It is Anthony who disclosed sensitive information to the public after the private meeting, information that falls under the non-public section of US security laws. This is a violation and a case of insider trading. Coyle later deleted the tweet.
However, this is good news for the crypto market. Argo, a top company, looking to further mining activities, is good for the crypto world. Argo released a publication affirming the new mining facility costs.
After another report published from short-seller Boatman Capital sharing the company’s location to build the facility and the estimated costs. Argo’s employees and partners do not know how to keep a secret.
The Publication on the $1.5-$2 Billion New Mining Facility
The publication of the potential costs of constructing the mining facility in Texas comes just a few months after a damning report from short-seller Boatman Capital, which focused on the land on which Argo will build the facility.
Argo also states that the $17.5 million land purchase is a solid deal and not overpaid for. The $1.5-2 billion includes the type of machines the facility will use, raw material cost, power costs, and labor costs. The company will rent machines and buy a few, all of which require money.
However, note that the cost is above is simply an estimation. The full cost of completing the facility depends on where Argo will choose to fully develop the facility or not. Therefore, figures from any source other than Argo are only assumptions because even Argo’s future results might be different.
Argo Blockchain the Future
The facility will help Argo make up to over 20% gains from other currencies other than Bitcoin. The mining facility is good for the cryptocurrency community, and everyone is looking forward to it.