Jack Kubinec

Crypto asset manager Grayscale hired John Hoffman to be its managing director and head of distribution and partnerships.&nbsp;



Hoffman spent the past several years at Invesco, where he most recently headed up the firm’s ETFs and Indexed Strategies division in the Americas.&nbsp;



Hoffman joins the firm as some speculate that resolution in Grayscale’s yearslong attempt to offer a spot bitcoin ETF <a href="https://blockworks.co/news/pinning-down-bitcoin-etf-approval-dates">could come soon after the new year</a>.&nbsp;



Grayscale is one of several firms promising to offer a spot bitcoin ETF pending regulatory approval but is uniquely positioned in that its Grayscale Bitcoin Trust <a href="https://blockworks.co/news/ark-invest-21shares-gain-edge-bitcoin-etfs">already holds $23 million assets</a> under management.



Read more: <a href="https://blockworks.co/news/grayscale-bitcoin-positive-catalyst">Grayscale sees positive catalysts on the horizon for bitcoin</a>



The traditional finance hire is par for the course at crypto-focused Grayscale. CEO Michael Sonnenshein was an analyst at J.P. Morgan before joining the firm a decade ago, and David LaValle, global head of ETFs, has Nasdaq and indexing firm Alerian on his resume.



In a Grayscale Q&amp;A <a href="https://www.grayscale.com/blog/people-and-culture/5-questions-with-john-hoffman">announcing</a> his joining the company, Hoffman said he first bought bitcoin via Coinbase in 2013 but has been “emotionally invested in its innovation for much longer.”



<h2 class="wp-block-heading">New faces in the C-suite</h2>



Argo Blockchain and Bastion both tapped senior executives this week.



The crypto mining firm Argo named Thomas Chippas CEO. Chippas’ lengthy resume includes stints as CEO at CBOE Digital and Citadel Technology and managing director at Citigroup and Barclays.&nbsp;



Caroline Friedman left her post as chief of staff at a16z Crypto to <a href="https://www.prnewswire.com/news-releases/caroline-friedman-appointed-as-chief-operating-officer-at-bastion-302000506.html">become</a> chief operating officer of Bastion. Friedman joins the startup founded by fellow Andreessen alums and focused on <a href="https://blockworks.co/news/bastion-startup-lightspeed-web3-onboarding-businesses">easing the onboarding of businesses</a> into crypto custody and trading.



<h2 class="wp-block-heading">Other notable hiring news</h2>



<ul class="wp-block-list">
<li>Applications for crypto jobs are “only mildly picking up this year” especially compared to the increase in applications as the market took off in 2021, Raman Sha from Crypto Jobs List said.</li>



<li>Former Coinbase chief compliance officer Mike Lempres <a href="https://www.moonpay.com/newsroom/mike-lempres-joins-moonpay">joined</a> the board of directors at MoonPay.</li>



<li>Ben Caselin became chief marketing officer of South African crypto trading platform VALR. Caselin was most recently chief strategy officer at MaskEX.</li>
</ul>



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Argo blockchain

Crypto hiring: Grayscale brings on new managing director ahead of ETF decision

Shalini Nagarajan

Bitcoin miner Argo Blockchain is letting go of its largest mining facility to avoid going bust, but will retain ownership of its rigs.



Argo is selling its flagship Helios plant located in Dickens County, Texas to Galaxy Digital for $65 million, it said in a <a href="https://argoblockchain.com//news-room/2022-december-helios-sale-to-galaxy" target="_blank" rel="noreferrer noopener">release</a> on Wednesday.&nbsp;



Helios, which spans <a href="https://f.hubspotusercontent40.net/hubfs/4320147/Argo%20Investor%20Presentation%20(Feb%202022).pdf" target="_blank" rel="noreferrer noopener">135,000 square feet</a>, is the world’s largest immersion-cooled mining facility and has access to 800 megawatts (MW) of electricity, according to its <a href="https://argoblockchain.com/our-facilities" target="_blank" rel="noreferrer noopener">website</a>.&nbsp;



Galaxy will host Argo&#8217;s bitcoin rigs moving forward under a two-year agreement. The transaction is set to close on Wednesday, Dec. 28.



The London-headquartered firm says the deal will reduce Argo’s overall debt load by $41 million and simplify its operating structure.&nbsp;



Under the deal, Galaxy will additionally extend an asset-backed loan worth $35 million to Argo. This loan will be secured by collateral including the 23,619 Bitmain S19J rigs located at Helios, as well as other machines located at Argo’s data centers in Canada.&nbsp;



Cash proceeds from the sale of the Dickens County facility will be used to repay debt, prepayment interest and other fees, including $84 million owed to NYDIG.



“Although we have sold the Helios facility, we haven&#8217;t sold any of our mining machines,” CEO Peter Wall said in a <a href="https://argoblockchain.com/galaxy-digital-helios-sale">video message</a>. “Those are going to continue to mine at the Helios facility.”



Earlier this month, Argo <a href="https://blockworks.co/news/argo-bankruptcy-still-on-the-table">warned investors</a> it may not have funds to last until the end of the year. The miner hinted it was in advanced negotiations to sell some assets under an equipment financing transaction, and that it hoped to secure a deal without filing for bankruptcy.



The firm now says it will refocus its efforts on its Canadian operations, which it says are unaffected by the Galaxy deal “except for the use of certain mining machines and other assets located in Quebec as collateral for the asset-backed loan.”&nbsp;



“Initially, Argo plans to refocus its efforts on growing and optimizing operations at its two data centers in Quebec, which are powered fully by low-cost hydroelectricity.”



Argo’s farms in Quebec, Canada are smaller. The one in Base Comeau, Quebec is spread over 40,000 square feet and wields 15 MW of capacity while the one in Mirabel covers 20,000 square feet with 5 MW.



<h3 class="wp-block-heading">Argo CEO hopes to see other side of the bitcoin bear</h3>



Still, markets responded positively to news that Argo could avoid bankruptcy in the short term, more than doubling on the London Stock Exchange (LSE).



Argo shares also jumped 50% during pre-market Nasdaq trade, although it&#8217;s still down more than 90% year to date.



Argo had requested its Nasdaq-listed stock be suspended for trading on Tuesday leading up to the announcement. The firm’s LSE shares were briefly <a href="https://www.coindesk.com/business/2022/12/09/shares-of-bitcoin-miner-argo-blockchain-suspended-in-uk-and-us/" target="_blank" rel="noreferrer noopener">suspended</a> earlier this month.



The miner said it won’t report third-quarter results this year. The stock is overseen by the UK Financial Conduct Authority, which requires the company to announce results only twice a year.&nbsp;



Alongside Argo, bitcoin miners have taken a beating from <a href="https://abc13.com/ercot-electricity-power-energy/11940013/" target="_blank" rel="noreferrer noopener">high energy prices</a>, low token prices and unmanageable debt obligations. Core Scientific, one of North America’s largest mining operations, filed <a href="https://blockworks.co/news/bitcoin-miner-core-scientific-to-file-bankruptcy-stock-tanks-30" target="_blank" rel="noreferrer noopener">for bankruptcy</a> last week.



Argo CEO Wall said the company has been through bear markets before and learned that these cycles must be navigated to survive.



“The key is to do well when things are good, and then to make sure that you&#8217;re able to continue through the hard ones so you can get to the other side,” he said.



Updated Dec. 28, 2022 at 6:30 am ET: Clarified date of Argo&#8217;s LSE suspension.



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Bitcoin Miner Argo To Sell Largest Facility to Stay Afloat, Stock Doubles

The <a href="https://blockworks.co/tag/bitcoin-mining" target="_blank" rel="noreferrer noopener">crypto mining sector</a> is continuing to suffer from low crypto prices and rising energy costs.&nbsp;



Argo Blockchain warned on Monday that it’s threatened by the risk of holding “insufficient cash” to sustain operations in the next month. It’s currently in advanced negotiations with an external party to sell some assets under an equipment financing transaction to improve its financial position.



Equipment financing is a type of secured loan that a company uses to purchase business-related materials such as machinery.&nbsp;



Argo <a href="https://argoblockchain.com/news-room/2022-december-restoration-of-trading" target="_blank" rel="noreferrer noopener">added</a> that it hopes to execute a deal without filing for Chapter 11 bankruptcy, “although there is no assurance that the company can avoid such a filing.”



McDermott Will &amp; Emery LLP are acting as legal advisers and Berkeley Research Group has been appointed as a financial adviser.&nbsp;



The company’s shares were suspended from trading on the London Stock Exchange and the Nasdaq on Dec. 9. Argo said that was triggered by “inadvertently published materials” related to its financing efforts that were put up on its website.



That content incorrectly implied the company was filing for Chapter 11 bankruptcy, Argo said. It has requested the UK Financial Conduct Authority to restore the listing of its ordinary shares.



In November, Argo said it mined 198 bitcoins, a drop from 204 in the month prior. That was mostly due to an increase in the bitcoin network difficulty last month, according to the company.



The London-based crypto miner’s stock is down more than 90% this year.&nbsp;



Argo recently disclosed that an anticipated capital injection deal for $27 million <a href="https://blockworks.co/news/crypto-miner-consolidation-imminent-as-some-industry-players-struggle" target="_blank" rel="noreferrer noopener">failed to come through</a>. The capital was meant to be put toward expenses for building out Argo’s flagship Helios facility in Dickens County, Texas. It isn’t clear why the funding stalled.



Other crypto miners have also disclosed financial woes in recent months. Core Scientific revealed in October that it would be unable to pay bills and that it was <a href="https://blockworks.co/news/core-scientific-stock-price-plummets-70-as-it-considers-bankruptcy" target="_blank" rel="noreferrer noopener">considering bankruptcy</a>. Meanwhile, <a href="https://blockworks.co/news/bitcoin-miner-iris-energy-says-its-bad-debt-contained-in-rotten-arms" target="_blank" rel="noreferrer noopener">Iris Energy</a> is seeking to stay afloat and is eyeing expansion.



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Argo Blockchain Warns Bankruptcy Still on the Table

Ben Strack

<div id="highlights-block_6369589c19e80" class="highlights">
 
</div>



A range of bitcoin miners are set to report third quarter results in the coming days as several companies in the mining sector are struggling to cope with financial pressures. 



Marathon Digital, Stronghold Digital Mining and Hut 8 Mining are among the companies in the space set to host earnings calls this week.&nbsp;



While analysts are not necessarily expecting big pronouncements of bankruptcies or acquisitions during industry players’ upcoming calls, they will be listening for how mining executives intend to navigate the current environment.



“I’m always listening for cues on expectations — company-specific and industry-specific — and specific companies’ moves to address their expectations,” Kevin Dede, senior technology analyst at HC Wainwright &amp; Co. told Blockworks.



<a href="https://cms.blockworks.co/crypto-miner-consolidation-imminent-as-some-industry-players-struggle/" target="_blank" rel="noreferrer noopener">Industry watchers told Blockworks</a> earlier this month that miner consolidation is imminent, as some of the larger miners in the space could look to scoop up struggling companies and their assets. 



But Lucas Pipes, managing director at B. Riley Securities, said miners in a solid financial situation are still likely to take a wait-and-see approach.&nbsp;



“They want to make sure they’re all secured and shored up and build that treasure chest to the extent they can,” he said. “Are you going to have exceptions to this rule? Yeah, you might.”



<h3 class="wp-block-heading">Keeping bitcoin mining rigs humming during crypto winter </h3>



Core Scientific revealed in <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001839341/5d07f815-c426-4db9-b79a-a38d616cf35a.pdf" target="_blank" rel="noreferrer noopener">filings</a> last month <a href="https://cms.blockworks.co/core-scientific-stock-price-plummets-70-as-it-considers-bankruptcy/" target="_blank" rel="noreferrer noopener">it was considering bankruptcy</a>, and Argo Blockchain followed by saying a potential capital injection of $27 million it was expecting <a href="https://cms.blockworks.co/crypto-miner-consolidation-imminent-as-some-industry-players-struggle/" target="_blank" rel="noreferrer noopener">had fallen through</a>. 



“The space is distressed,” Pipes said. “There’s no other way of putting it.”&nbsp;



Dede added that as it becomes harder to raise money in public markets, miners are being forced to purge assets.&nbsp;



Core Scientific said Monday that it sold 2,285 bitcoins at an average price of $19,639, as proceeds totaled roughly $45 million. The company held 62 BTC and about $32 million in cash, as of Oct. 31.



Core Scientific and Argo Blockchain have not yet listed earnings call dates.&nbsp;



Iris Energy is <a href="https://cms.blockworks.co/bitcoin-miner-iris-energy-says-its-bad-debt-contained-in-rotten-arms/" target="_blank" rel="noreferrer noopener">also in financial distress</a>. The Australia-based bitcoin miner said in an SEC filing last week that it can generate $2 million in monthly gross profit by mining bitcoin, while monthly principal and interest repayments on its debt stands at $7 million.



Bom Shin, vice president of corporate finance at Iris Energy, told Blockworks last week that the company’s debt is structured within a number of special-purpose vehicles (SPVs), which had a market value worth about 35% less than its principal loans outstanding as of September’s end.



The company was engaged in ongoing discussions with its unnamed lender, Shin added.



Iris Energy said that if it is unable to restructure the loans, two of its SPVs would have to default on the loans, which would likely result in the lenders foreclosing on the mining rig collateral, according to a Nov. 3 research note by Compass Point Research and Research analysts Chase White and Joe Flynn.



The analysts added that while Iris Energy’s stock price dropped following the news — and that the company may have a hard time getting equipment-backed financing in the future — they believe the company will be in a better financial situation after its negotiations with its lenders.



“We believe the market misunderstands the implications of the situation, which we see as a potentially significant positive for [Iris] that will allow it to continue to operate without the burden of expensive debt,” White and Flynn said.&nbsp;



In addition to the more recent struggles in the space, crypto mining data center operator <a href="https://cms.blockworks.co/compute-norths-business-goes-south/" target="_blank" rel="noreferrer noopener">Compute North filed for bankruptcy</a> in Texas in September.



Dede said he expects it will take a bit more pressure before more bankruptcies and consolidation take shape.



“You can expect to see some suffering for a while, I think,” he added. “I’m in no position to say how long this bear market lasts, but people who are running these companies should position themselves to endure a lengthy one.”



<h3 class="wp-block-heading">The space’s potential acquirers could wait to buy&nbsp;</h3>



Marathon Digital posted <a href="https://cms.blockworks.co/crypto-miner-marathon-digital-posts-192m-net-loss-in-q2/" target="_blank" rel="noreferrer noopener">a net loss of $192 million</a> during the second quarter and is set to report its third quarter earnings on Tuesday at 4:30 p.m. ET. 



The company said on Nov. 2 that it added about 32,000 miners last month to raise its hashrate to roughly 7 exahashes per second (EH/s). It also produced a record 615 bitcoins in October, increasing its total holdings to 11,285 BTC.



Marathon seeks to hit roughly 13 EH/s by the end of 2022 and 23 EH/s by mid-2023, Marathon CEO Fred Thiel told Blockworks.



Thiel said last month that Marathon would keep an eye on cheap assets from struggling miners. He noted that the company could look to purchase a hosting site, for example, if such a buy made strategic sense.



Riot Blockchain is another company that has expressed interest in acquisitions, as CEO Jason Les called his firm <a href="https://cms.blockworks.co/riot-blockchain-ceo-firm-is-one-of-mining-spaces-best-positioned-acquirers/" target="_blank" rel="noreferrer noopener">one of the segment’s “best-positioned acquirers.”</a>



The company produced 509 bitcoins in October and held 6,825 BTC, as of Oct. 31. It seeks to reach 12.5 EH/s during the first quarter of 2023. Riot has a special meeting of stockholders set for Nov. 17.



Frank Holmes, executive chair of HIVE Blockchain Technologies, <a href="https://cms.blockworks.co/ex-eth-miner-hive-blockchain-eyes-buying-opportunities-post-merge/" target="_blank" rel="noreferrer noopener">told Blockworks</a> in September that his firm would be evaluating buys of equipment, and potentially mining firms, over the next six months. 



Cleanspark said on Nov. 1 that it acquired 3,843 units of Antminer S19J Pro bitcoin mining machines for $5.9 million. The machines appeared to have come from Argo Blockchain, which reported selling the same number of S19J Pro units last week.&nbsp;



Pipes said though he believes “we’re getting close” to seeing more mergers and acquisitions in the space, there are often relatively few operational synergies to take advantage of.&nbsp;



He added that Riot is likely in the best financial situation of any miner, while Marathon is also in a position to take advantage of opportunities. But, he noted, those companies may want to focus on their ambitious hashrate targets.



“I think it’s first things first — execute on the existing growth plan before you take precious capital to add in more growth that may not be as attractive as what you have planned for anyways” Pipes said.&nbsp;



<h3 class="wp-block-heading">Other miners to keep an eye on</h3>



After Marathon’s earnings call on Tuesday, Stronghold Mining and Hut 8 Mining are scheduled to host their own on Wednesday at 5:00 p.m. ET and Thursday at 10:00 a.m. ET, respectively.&nbsp;



Canada-based miner Bitfarms is set to report its third quarter results on Nov. 14 at 11 a.m. ET



Stronghold said last week that it eliminated all outstanding principal — totaling about $67 million — under its equipment financing agreements with NYDIG and The Provident Bank.&nbsp;



Stronghold CEO Greg Beard said in a statement that the company was rapidly deleveraging its balance sheet and enhancing liquidity to pursue acquisitions of bitcoin miners at attractive prices. Stronghold had roughly $30 million of liquidity in cash and bitcoin, as of Nov. 1.



Meanwhile, Hut 8 Mining produced 299 bitcoins in October to raise its holdings total to 8,687 BTC. Its installed hashrate capacity was 3.07 EH/s at the end of the month.



Hut 8 CEO Jaime Leverton said during Blockworks’ Digital Asset Summit in September that acquisitions are not necessarily the best thing in the current market environment, as the company can buy new machines at attractive prices.



Bitfarms, <a href="https://cms.blockworks.co/crypto-miner-bitfarms-sells-half-its-bitcoin-to-reduce-debt-boost-liquidity/">which resorted to selling bitcoin</a> earlier this year, mined 486 BTC in October and sold all of it.



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What To Expect on Miners’ Q3 Earnings Calls As Industry Remains ‘Distressed’

As more miners report dire financial pressures tied to low crypto prices, high energy costs and debt, a pickup in consolidation is inevitable, industry watchers said.&nbsp;



After Core Scientific revealed in filings last week <a href="https://cms.blockworks.co/core-scientific-stock-price-plummets-70-as-it-considers-bankruptcy/" target="_blank" rel="noreferrer noopener">it was considering bankruptcy</a>, Argo Blockchain became the latest large bitcoin miner to reveal financial pressures, saying an expected capital injection of $27 million had fallen through.&nbsp;



A company spokesperson declined to comment.



As small to midsize firms struggle, larger mining rig operators <a href="https://cms.blockworks.co/riot-blockchain-ceo-firm-is-one-of-mining-spaces-best-positioned-acquirers/" target="_blank" rel="noreferrer noopener">have expressed interest</a> in buying opportunities. Among the possible acquirers is Marathon Digital, which <a href="https://cms.blockworks.co/marathon-ceo-building-more-attractive-than-buying-right-now/" target="_blank" rel="noreferrer noopener">previously said</a> it was more focused on building organically than buying.



“We like having an agile strategy…and the capitalization to be able to take advantage of opportunities like this,” Marathon Digital CEO <a href="https://www.linkedin.com/in/fredthiel/" target="_blank" rel="noreferrer noopener">Fred Thiel</a> told Blockworks.



Thiel declined to comment on whether the firm has engaged with Core Scientific or Argo, but he said Marathon would keep an eye on cheap hosting assets.



“Would Marathon participate, possibly, in purchasing a hosting site?” Thiel said. “Yeah, if the price is absolutely attractive. Or if it made strategic sense.”



<h3 class="wp-block-heading">Argo Blockchain the latest miner under stress</h3>



Argo Blockchain <a href="https://argoblockchain.com/news-room/2022-october-operational-update" target="_blank" rel="noreferrer noopener">said Monday</a> it no longer expects to receive the $27 million capital influx it had expected from a “strategic” investor, which it declined to name. The capital was set to be used in part for capital expenditures for its continued build-out of its flagship Helios facility in Dickens County, Texas. It’s not clear why the funding fell through.&nbsp;



As Argo Blockchain explores other financing opportunities, the company sold nearly 4,000 new Bitmain S19J Pro machines to raise $5.6 million.



“Should Argo be unsuccessful in completing any further financing, Argo would become cashflow negative in the near term and would need to curtail or cease operations,” the company said.



<a href="https://cms.blockworks.co/tag/nydig/" target="_blank" rel="noreferrer noopener">NYDIG</a> agreed in May to loan Argo up to $70.6 million to recapitalize the purchase of digital asset mining equipment for the Texas facility. It is not clear whether NYDIG was set to supply the additional $27 million.&nbsp;



A NYDIG spokesperson did not immediately return a request for comment.&nbsp;



The move comes after Core Scientific said in filings last week it would be skipping upcoming payments as it faces liquidity and operational issues. The miner said it hired advisers as it considers its options, including seeking relief through bankruptcy.



Crypto mining data center operator <a href="https://cms.blockworks.co/compute-norths-business-goes-south/" target="_blank" rel="noreferrer noopener">Compute North filed for bankruptcy</a> in Texas in September. The firm owes as much as $500 million to a minimum of 200 creditors, according to a <a href="https://www.scribd.com/document/596161089/178148591946#from_embed" target="_blank" rel="noreferrer noopener">petition</a> filed in the US Southern District of Texas bankruptcy court.



<h3 class="wp-block-heading">Will miners survive the ‘perfect storm’ of pressures?</h3>



Chase White, an analyst at Compass Research &amp; Trading, said in a research note published Tuesday that the firm has lowered its price target for Argo from $4.50 to $1.



The stock price was $0.90 at 3:00 pm ET on Tuesday, plummeting about 93% year to date and down 19% on the day.



“We believe [Argo] probably has enough liquidity to stay afloat for the next couple of quarters,” White said. “Part of the reason we thought [Argo] was raising share capital was to have enough cash to enter into a fixed price power purchase agreement (PPA) for its [Texas] facility to rein in power costs, which now seems to be off the table.”



Glyn Jones, CEO of Icebreaker Finance, said too much of the industry focused exclusively on debt-fuelled growth in 2020 and 2021 — while paying less attention to the cost of production.



Icebreaker in September <a href="https://cms.blockworks.co/will-new-lending-pool-for-crypto-miners-attract-borrowers/" target="_blank" rel="noreferrer noopener">launched a lending pool for miners</a> he called “vertically integrated and positioned for success.” The loans, with interest rates between 15% and 20%, carry a term of 12 to 18 months and are collateralized by assets such as mining rigs, power transformers and digital assets.



“We estimate that less than 25% of US hashrate is operating with the financial resilience necessary to weather the full range of credible scenarios including a further deterioration in hash price,” Jones told Blockworks. “More so than perhaps any other industry, its economics dictate that only the most efficient operators will survive in the long run. No miner has greater pricing power, so it is all about cost of production.”



Increasing bitcoin mining difficulty and associated costs — as well as looming debt — have created “a perfect storm” for many miners, Thiel said. He added that about 20 or so public miners could be at risk of going bankrupt due to current market conditions.



“If you were to look across the industry and [see] who has equipment financing, those are the ones with the highest risk today,” Thiel said. “Or those who have a lot of debt service to make.”



<h3 class="wp-block-heading">Healthier miners seek buying opportunities</h3>



Bill Cannon, head of portfolio management for digital asset fund manager Valkyrie Investments, said the mining space’s stronger firms are likely to bolster their positioning through cut-rate acquisitions.



Cannon expects mergers and acquisitions to pick up this quarter and early next year as companies on the verge of insolvency jostle to retain at least some shareholder value — and keep their doors open.&nbsp;



“Consolidation is inevitable,” Cannon said. “All industries go through it, and we believe that the remaining miners will benefit from this period, similarly to how the Amazons and Googles of the world did after they emerged from the ashes of the dot-com boom.”



Riot Blockchain CEO Jason Les told Blockworks his firm was one of the “best-positioned acquirers” in the sector. A number of companies, Les added, will go bankrupt or tap private markets and associated leveraged-buyouts.



Those considering bankruptcy might want to go that route sooner rather than later, Thiel said.&nbsp;&nbsp;



“If you’re near the risk of doing it, you’d better hurry up,” he said. “Buyers for your assets are going to run out of money, because there are so many people ahead of you in line that are in bankruptcy.”



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Crypto Miner Consolidation Imminent as Some Industry Players Struggle

David Canellis

<div id="highlights-block_6274044c0931c" class="highlights">
 <ul>
 <li>Argo Blockchain stock surged up to 10% after saying its new flagship mine in Texas is ready to generate crypto next week</li>
 <li>The London-based company has borrowed nearly $100 million from NYDIG in the past few months to acquire mining rigs for the site</li>
 </ul>
 
</div>



Argo Blockchain says its new crypto facility in Texas is fully energized and ready to start mining next week.



Argo celebrates the milestone with an inauguration ceremony at the facility on Thursday afternoon. The company’s London-listed stock surged up to 10% on the announcement and currently sits about 7% above its previous close.&nbsp;



The 320-acre Dickens County plot, Helios, will serve as Argo’s flagship bitcoin mining operation moving forward. Argo has two smaller facilities in Quebec.



Argo <a href="https://www.theblockcrypto.com/post/123386/argo-filing-reveals-texas-mining-facility-could-cost-up-to-2-billion-to-build" target="_blank" rel="noreferrer noopener">projected</a> costs of up to $2 billion to get Helios online last November, <a href="https://www.londonstockexchange.com/news-article/ARB/2021-full-year-results/15428672" target="_blank" rel="noreferrer noopener">financed</a> by debt offerings and offloading some of the bitcoin it mines every month.



In fact, word <a href="https://www.coindesk.com/business/2022/05/04/argo-blockchain-borrows-70m-from-nydig-to-buy-mining-rigs/" target="_blank" rel="noreferrer noopener">broke</a> of a $70-million loan from crypto service provider NYDIG Wednesday, cash Argo will use to acquire more mining rigs — bringing the total loan above $97 million. Argo’s market capitalization is around $370 million.



&#8220;I&#8217;m extremely grateful to everyone who has been involved in the planning and execution of Helios,” CEO Peter Wall said in a statement. “We started construction on the facility in July 2021 and it is a tremendous achievement that the site will commence mining operations in less than 12 months.



The UK firm said the 20,000 Bitmain S1PJ Pro mining rigs bought last September are still being delivered and installed. Argo will continue receiving and installing the Bitmain machines in batches between May and October of this year but didn’t specify how many rigs were already housed at the site.



Argo also signed a different <a href="https://www.theblockcrypto.com/linked/137672/argo-blockchain-and-core-scientific-swap-bitcoin-mining-fleets" target="_blank" rel="noreferrer noopener">deal</a> with fellow mining org Core Scientific in March that sees the two companies swap thousands of ASICs. Argo intends to exchange its less powerful Antminer S9s – which were housed at Core Scientific – for more Bitmain S1PJ Pro machines.



Some of Core Scientific’s rigs have already been installed, with the rest to be delivered and set up throughout July. Argo will also be one of the first to receive Intel’s new mining chips, which are <a href="https://cms.blockworks.co/intel-unveils-latest-energy-efficient-asic-mining-chip/" target="_blank" rel="noreferrer noopener">pegged</a> as more efficient than some off-the-shelf ASICs currently available.



Right now, Argo <a href="https://argoblockchain.com/" target="_blank" rel="noreferrer noopener">wields</a> 1.605 exahashes per second (EH/s), equivalent to about 0.7% of Bitcoin’s hash rate. Marathon Digital Holdings, the largest crypto mining company by market value, <a href="https://ir.marathondh.com/news-events/press-releases/detail/1281/marathon-digital-holdings-announces-bitcoin-production-and" target="_blank" rel="noreferrer noopener">maintained</a> 3.9 EH/s as of March – more than double Argo’s current capacity. 



Over the next few years, Argo says its new site will eventually harness 800 megawatts (MW) of electricity. This would surpass the 750 MW planned to flow through rival Riot Blockchain’s Texas <a href="https://www.cnbc.com/2021/10/31/bitcoin-mining-giants-bitdeer-riot-blockchain-in-rockdale-texas.html" target="_blank" rel="noreferrer noopener">site</a> in Rockdale, some 350 miles away.



Argo’s Helios will make do with just 200 MW for now, one-fifth of its targeted energy expenditure. The company reckons this will still boost its overall maximum hash rate by 243% to 5.5 EH/s by the end of the year.&nbsp;



If that happens, Argo could handle a hash rate of more than 20 EH/s overall, equal to around 9% of the Bitcoin network’s current capacity.



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