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21April 2021
Argo Blockchain PLC
("Argo" or the "Company")
Argo engages Navier to develop its mining facility in Texas
Grant of Warrants to Navier
Argo, a global leader in cryptocurrency mining (LSE: ARB), is pleased to announce it has signed a contract with Navier Inc., a specialist in the design and construction of cryptocurrency mining facilities, to co-develop Argo's new mining facility, Helios, in West Texas.
Navier will provide a range of consulting services related to the design and construction of the new Argo facility, including the co-design of a best-in-class electrical infrastructure capable of supporting 200MW of mining. Navier will also work with Argo to install next-generation immersion technology designed to boost mining productivity, control heat, and increase the lifespan of installed mining rigs.
Under the terms of the agreement, Argo will pay a monthly retainer and has agreed to issue Navier with certain warrants ("Warrants").
Granting of Warrants
The Company has granted a Warrant to Navier to purchase up to 223,821 ordinary shares of £0.001 each in the capital of Company (Ordinary Shares) at a purchase price per share of £1.35. Under the terms of the Warrant, the first tranche of Warrants in respect of 18,644 Ordinary Shares will vest on issue, with the remainder vesting over the following 11 months, in each case, conditional upon Navier being engaged by the Company and not being under notice. The Warrants are exercisable until the earlier of (i) the next Bitcoin halving or (ii) 19 March 2024.
Peter Wall, Chief Executive of Argo Blockchain, said: "We are delighted to have Navier on the team to help us develop our new mining facility in West Texas. Argo intends to build state-of-the-art mining infrastructure which will not only provide greater control over our operations but also meaningfully expands our mining capacity. At this facility we believe we will have access to some of cheapest renewable energy worldwide."
Josh Metnick, Chief Executive of Navier, said: "We are thrilled to collaborate with Argo to help build such an innovative green mining facility in West Texas. Navier is committed to ensuring that Argo builds one of the most cost effective, power efficient, and structurally scalable industrial mining sites in the world."
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
And back to £1.65 on Google. Checked LSE, the £1.35 trade was quite small and flagged 'UT' - uncrossing trade. Not sure what it means but it's very out of place compared to bordering trades. May have been delay from this morning?
All miners are down. A shift in the landscape. Maybe some chasing COIN and trying to ride the wave. Once the dust settles we may see some funds flow back into mining. Also, the SP depreciation will help attract new blood.
This is getting ridiculous now, but also a welcome and healthy correction. Argo shot up too fast and too soon and brought with it unrealistic expectations (in terms of timelines for SP appreciation). I do hope holders know this will recover and a loss is only realised when you sell shares. Keep strong!
Panic sell??
Argo is guaranteed to mine 2500 BTC this year.
Here's a refresher and I will be SUPER conservative and assume BTC drops to $50k by year end.
2500 x $50k BTC = $125m x 25 PE = $3.1bn MCap / 390m shares = $8 per share.
2500 x $50k BTC = $125m x 10 PE = $1.2bn MCap / 390m shares = $3.2 per share.
A PE of 10 is laughable in this sector. It's a no brainer that a higher PE will set in considering Coinbase is currently c100x.
Now raise your hand if you think BTC will be above $50k by year end.
Done? If you sold, I hope your hand is not raised right now.
Yes, these last days have been unexpected.
However the fundamentals can't be ignored.
The market will catch up.
I'm sure a few stop losses were triggered in that drop. And yes, I agree with you RC, stronger minds and hands needed that understand value and hold long term. If you can't handle the heat...leave it to us. Holding until 2022 here.
Because it would have been pre-recorded. Yesterday's action was not factored in and PW is not orchestrating investor behaviour. The market is doing its thing. Sometimes movements don't make sense and that applies to ALL stocks in ALL industries. Just hang in there and go for a walk.