Argo Blockchain expands crypto mining energy deal

The London-listed firm said the agreement built on its existing relationship with GPU.one, and replaced an existing three-year deal signed in August last year, at the time when Argo began its industrial-scale mining operations.

It said the new agreement covered a three-year period from 25 June, with an option to extend thereafter for an additional two years.

The deal would enable Argo to expand mining capacity by 47% to 14MW at its two existing data centres in Quebec, and reduce the mining costs payable by the company by 39% from the cost of its initial agreements for 9.5MW signed in August last year.

It would also reduce the contingent liability of the firm under the agreement, and granted Argo the right to terminate the agreement at any time, without cause, on four months' notice.

As part of the new agreement, Argo said it had agreed to convert a previously-paid deposit of £1.44m into a strategic investment in GPU.one.

“This deal strengthens our existing strong relationship with GPU.one and is part of our ambitious expansion to take advantage of the continuing industry upturn,” said Argo Blockchain executive chairman Mike Edwards.

“The reduction of costs under this agreement, together with the new, more efficient hardware we have purchased means we are now one of the most efficient miners in the market.

“GPU.one provides the robust infrastructure in an established jurisdiction to support our long-term growth.”

The board baid both data centres were fully operational, with the 14MW capacity to be filled by September with the previously-announced purchases of mining hardware.