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.”
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.
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.