Welcome back to the Tribe! In this post we dive into updates on the Helios Mining Facility!
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Helios Mining Facility
Following an equipment financing loan secured from virtual asset investment firm New York Digital Investment Group earlier in March, crypto mining industry leader Argo Blockchain has signed an agreement with Washington-located Core Scientifics.
The deal will facilitate the exchange of Argo’s current mining machines for a new fleet of miners ordered by Core. Also, a mutual termination term was added to the agreement according to the report.
Argo Acquires Pro Bitcoin Mining Units for $2 Billion Helios Site
During a regulatory filing back in November 2021, Argo blockchain revealed the estimated cost for its mining facility in Dickens County, Texas. The report stated that the mining mammoth planned to splurge around $2 billion to build and fully kit its so-called Helios site.
The estimate included the acquisition of a plot of land reportedly worth $17.5 million. Despite a controversial report on the purchase from short-seller Boatman Capital, Argo Chief Executive Officer Peter Wall insisted that the deal was solid and marked a proper acquisition.
CEO Wall also added that the cost projection was only an estimate:
“The actual costs for Argo to build and kit out the Helios facility in Texas will also depend on the extent to which Argo decides to fully develop the property, which has not yet been determined”
Securing Financing
A few months later on Thursday March 10, 2022, the crypto mining powerhouse secured an equipment financing loan worth around $26 million. The fresh injection of cash obtained from virtual assets outfit, the New York Digital Investment Group (NYDIG), was supposedly geared towards kitting efforts for Argo’s Helios facility in Texas.
Shortly after, Argo announced a swap deal with Core Scientific. The decentralized technology infrastructure service provider hosts about 60% of Argo’s mining capacity. According to the press statement released on Monday March 14, 2022, the crypto mining units hosted at Core’s site include a fleet of Bitmain Antminer S19 machines designed specifically for Bitcoin mining.
The latest deal between the 2 digital asset companies will reportedly facilitate the swap of Argo’s Bitmain miners for S19J Pro Bitcoin units. Core will also assume complete operational control of Argo’s former fleet and continue to deploy the machines for mining.
Commenting on the move by Argo, CEO Wall said that the deal allows the company to reduce the risks associated with mining on the third-party sites and also optimizes operational costs. Wall added that the S19J Pro machines will arrive at the Helios facility in stages to mitigate any drastic dip in hashrate. The CEO also said:
“The agreement with Core marks the final step towards our strategic objective of owning and operating all our miners, a path which we chose to pursue in 2020. While we have been pleased with the performance of our miners hosted with Core, this agreement allows us to upgrade our existing fleet and strengthen our mining infrastructure.”
Finally, the latest news signals the end of Argo’s mining operations in facilities not owned by the firm as the crypto mining giant moves to establish its Helios site as an industry-leading mining facility.
Other News – MiCa Amendments For Bitcoin
After weeks of deliberation, the EU parliament is set to vote on its major crypto regulation today. The proof-of-work clause which was removed because of its impact on major cryptocurrencies found its way back into the regulation ahead of the vote. A move that may lead to a ban on Bitcoin and other major cryptocurrencies in EU states.
Helios Mining Facility News
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