Source: financemagnates, 27/1/2024
Wall Street-listed mining company Argo Blockchain (LSE: ARB, NASDAQ: ARBK), has entered into a hosting agreement with Merkle Standard LLC for its mining equipment in Memphis, Tennessee, with additional units allocated to its Quebec facility.
Wall Street Bitcoin mining company Argo Sets New Hosting Arrangements
Argo Blockchain has entered into a hosting agreement with Merkle Standard for more than 5,000 bitcoin miners in Memphis. The company expects one-third of the miners previously hosted by Helios to be operational by the end of February.
Under the agreement, Merkle Standard will host 5,293 S19J Pro mining rigs at its Tennessee site, scheduled to be deployed in February 2025 within a minimum of one year. Meanwhile, Argo will install 2,500 S19J Pro mining rigs at its facility in Bay Como, Quebec.
Mining hardware, previously operating at the Helios facility, are undergoing technical conversion from immersion-based systems to air-cooled systems. Argo notes that the refurbishment process should be completed by the end of March, with units shipped to both locations during February.
These bulletins represent approximately one-third of the 23,000 mines previously hosted at Helios. The company reported ongoing discussions with Merkle regarding the potential expansion of the current hosting arrangement.
According to the announcement, Argo’s hash rate will gradually increase until February as mining hardware goes into operation. The company continues to explore hosting options for the remaining mining equipment.
Departure of the CEO
Furthermore, Thomas Chibas, CEO of Argo Blockchain, will step down from his position and resign from his seat on the board effective February 28, 2025. He assumed his leadership role in late 2023, when the broader cryptocurrency market and mining industry were under great pressure.
During his tenure, Chibas oversaw significant financial improvements in the dual-listing cryptocurrency mine. This included repaying the Galaxy loan ahead of schedule and strengthening the company’s overall balance sheet. Although Argo’s position has improved, the challenges remain clear: the company’s report for the third quarter of 2024 showed a net loss of $6.3 million, reflecting ongoing market headwinds Mining margins shrink.
In December, Finance Magnates reported that Argo had acquired £4.2 million (about $5.3 million) through a share subscription. The company issued about 76.9 million new ordinary shares at a price of 5.5p per share to an institutional investor. This injection of funds supports key initiatives, such as the transfer or sale of mining equipment from the Helios facility in Texas and the continuation of bitcoin mining operations in Quebec. Argo is also exploring the expansion of high-performance computing.
