Argo Blockchain Acquires 2 Data Centers in Canada

Thursday, 13/05/2021 | 10:14 GMT by Arnab Shome
  • Together, these data centers can generate 20MW of power.
Argo Blockchain Acquires 2 Data Centers in Canada
Reuters

In an attempt to increase Bitcoin mining capacity, London-listed Argo Blockchain (LON: ARB) announced on Thursday the completion of the acquisition of two data centers located in the Quebec province in Canada.

Both of these data centers will generate a combined power capacity of 20MW. These data centers are almost entirely run by locally generated hydroelectricity, meaning Argo can benefit from cheap power in the region.

A Strategic Acquisitation

According to the company, the latest acquisition is a part of its strategy to increase control over the mining facilities in which its machines are hosted. Apparently, a significant number of Argo’s mining machines are hosted in these two data centers. The company stressed that the move will bring long-term stability to its business.

“Argo's purchase of data centers in Canada represents another milestone for the Company as we seek to take greater control over our mining production and mining cost base, while also laying solid foundations for long-term growth,” Argo CEO, Peter Wall said in a statement.

Additionally, the announcement detailed that the Payments for the acquisition were mainly non-cash, consisting of the assumption of existing bank obligations related to these facilities and from the deposits made earlier.

Similar to most of the major crypto mining companies, Argo is increasing its arsenal of crypto mining rigs. The UK company reported a 1,000 percent spike in Bitcoin mining revenue in 2019 as the company mined 1,330 Bitcoin throughout the year. Moreover, it posted impressive operational numbers for the first few months of 2021.

Furthermore, its Chief Executive made headlines earlier this year as he decided to receive his entire salary in Bitcoin.

In an attempt to increase Bitcoin mining capacity, London-listed Argo Blockchain (LON: ARB) announced on Thursday the completion of the acquisition of two data centers located in the Quebec province in Canada.

Both of these data centers will generate a combined power capacity of 20MW. These data centers are almost entirely run by locally generated hydroelectricity, meaning Argo can benefit from cheap power in the region.

A Strategic Acquisitation

According to the company, the latest acquisition is a part of its strategy to increase control over the mining facilities in which its machines are hosted. Apparently, a significant number of Argo’s mining machines are hosted in these two data centers. The company stressed that the move will bring long-term stability to its business.

“Argo's purchase of data centers in Canada represents another milestone for the Company as we seek to take greater control over our mining production and mining cost base, while also laying solid foundations for long-term growth,” Argo CEO, Peter Wall said in a statement.

Additionally, the announcement detailed that the Payments for the acquisition were mainly non-cash, consisting of the assumption of existing bank obligations related to these facilities and from the deposits made earlier.

Similar to most of the major crypto mining companies, Argo is increasing its arsenal of crypto mining rigs. The UK company reported a 1,000 percent spike in Bitcoin mining revenue in 2019 as the company mined 1,330 Bitcoin throughout the year. Moreover, it posted impressive operational numbers for the first few months of 2021.

Furthermore, its Chief Executive made headlines earlier this year as he decided to receive his entire salary in Bitcoin.

About the Author: Arnab Shome
Arnab Shome
  • 6414 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6414 Articles
  • 84 Followers

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