Argo Blockchain PLC ('Argo' or 'the Company') - Major Contract Variation and Extension Signed with GPU.one
27 June 2019 - 10:55PM
Business Wire
Argo, a UK-based provider of enterprise scale cryptocurrency
mining services (LSE: ARB), is pleased to announce the variation
and extension of a multi-year agreement with GPU.one, a leading
Canadian data centre provider which increases the Company’s access
to clean power supplies to a total of 14 megawatts at significantly
reduced prices.
The agreement builds on the Company’s existing relationship with
GPU.one and replaces an existing three-year deal signed in August
2018, at the time when Argo commenced its industrial-scale mining
operations.
The new agreement:
- covers a three-year period from June 25th, 2019, with an option
to extend thereafter for an additional two years;
- enables Argo to expand mining capacity by 47% to 14MW at its
two existing data centres in Quebec, Canada;
- reduces the mining costs payable by the Company by a reduction
of 39% from the cost of the Company’s initial agreements for 9.5MW
signed in August 2018; and
- reduces the contingent liability of the Company under the
agreement and grants the Company the right to terminate the
agreement at any time, without cause, on four months’ notice.
As part of the new agreement, Argo has agreed to convert a
previously paid deposit of £1,436,700 into a strategic investment
in GPU.one.
Mike Edwards, Executive Chairman of Argo, said: "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. 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."
Both data centres are fully operational and the 14MW capacity
will be filled by September 2019 with the previously announced
purchases of mining hardware.
Vladimir Plessovskikh, the Chief Executive of GPU.one, said:
“Argo is at the forefront of this fast-growing global sector and
this new agreement is part of a successful and long-term
collaboration between GPU.one and Argo.”
About Argo:
Argo Blockchain plc is a global data centre business that
provides a purpose-built and flexible platform for mining of
leading cryptocurrencies for the enterprise-scale and institutional
sectors worldwide from operational centres in Canada. The Company
is headquartered in London, UK and its shares are listed on the
Main Market of London Stock Exchange under the ticker: ARB.
About GPU.one:
GPU.one is the Canadian leader in turn-key high-density data
centres. We build and manage affordable, secure, high-quality,
high-reliability facilities specializing in density solutions.
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Argo Blockchain Mike Edwards President &
Executive Director via Tancredi +44 207 887 7633 Neil
Thapar Financial Communications Adviser +44 (0) 7876
455323 Mirabaud Peter Krens Corporate Broker +44 203
167 7221 Tancredi Intelligent Communication Media Relations
Salamander Davoudi salamander@tancredigroup.com +44 7957 549 906
Emily Valgimigli emma@tancredigroup.com +44 7727 180 873
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