Publicly-traded Argo Blockchain is planning to open a new 200-megawatt facility in the U.S. state of Texas.
The London Stock Exchange-listed company announced the news on Wednesday, saying that it has entered into a non-binding letter of intent with DPN LLC of New York to acquire 320 acres of land in West Texas.
The land acquisition will cost $17.5 million, said Argo, adding that it will be financed via new shares to be allotted to DPN upon a definitive agreement and other approvals.
On completion of the definitive agreement, Argo said it would issue $5 million worth of new shares to DPN, and the balance shares of $12.5 million will be issued in installments as contractual terms are fulfilled.
Argo plans to also take a $100 million “pre-negotiated” loan to build out the Texas facility. When completed, the facility is expected to provide Argo with electricity at “some of the lowest rates in the world.”
As The Block has reported previously, Texas has cheap electricity, and several bitcoin miners have opened or plan to open facilities in the state. These firms include Layer1, Whinstone and Northern Bitcoin, SBI Holdings and GMO Internet, and Crusoe Energy System, among others.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.