Recently there has been a flurry of progress at the site for the new Argo Blockchain Bitcoin (and other cryptocurrency) mining facility the firm is calling Helios.
This 130,000-square-foot facility is being built on a quarter section of former farmland in the McAdoo/Afton area of northwestern Dickens County. Such a large operation moving into the area has sparked questions among residents and others such as “What is Bitcoin mining and why do it in Dickens County?”
Traditional mining is easily understood to mean an excavation in the earth to extract valuable minerals. In a similar way, Bitcoin (BTC) mining is a difficult process resulting in newly minted cryptocurrency. For the purpose of this article, we’ll use the example of BTC though it’s only one brand of crypto, for short.
The prospector (Argo Blockchain, in this case) uses a miner (a very powerful computer) to verify complex puzzles or transactions. These transac tions happen when someone transfers or purchases something on the network using their BTC. The miner machine has to solve complex equations and use a lot of energy to verify the transaction/purchase as legitimate. The miner is rewarded for this process with newly created BTC. This process is known as “proof of work” consensus, because the transaction is being validated by the work the computer is doing to solve the problem.
Since there is only a set amount of BTC that will ever exist (21 million), BTC increases in value as more people start to use it around the world. Similarly, mining gold or other precious metals takes a lot of physical work, but the reward is based on how much of that commodity exists in circulation and how many people assign value to it. In this way, the current BTC mining race might be compared to the California Gold Rush of 1848.
The Helios facility will require a massive amount of energy to operate their mining activities. The nearby Cottonwood electrical substation is primarily powered by wind energy, something West Texas has an abundance of. This substation has an energy congestion problem with not enough displacement for its load during non-peak usage times. The Helios facility will directly draw from Cottonwood, helping to relieve the congestion.
Argo Blockchain has entered into an arrangement with the Electric Reliability Council of Texas (ERCOT), that in ex change for financial incentives, they agree to power down their operations during residential peak usage times. This arrangement will benefit Argo Blockchain, ERCOT and the citizens relying on consistent power from the substation. All of these factors made Dickens County a suitable home for Argo Blockchain’s new facility.
Helios will initially house more than 20,000 mining machines, which will be installed in batches once the facility is operational in late March or early April 2022. The facility will require around 20 local full-time employees for daily operations.
The Argo Blockchain com pany is committed to a smart growth philosophy. When the time is right, they will continue to purchase new mining machines to fill the facility to full operational capacity. For the benefit of company and community alike, this will mean more jobs as the facility continues to grow over time.
Recently, Argo Blockchain held a 2021 third-quarter financial update with investors. The company presented a very positive forward outlook. Its earnings are reported to be significantly up over last year, and its mining cost margin was a healthy 85% with an average direct cost of $6,293.00 per BTC mined, according to the update.
Many of these forward projections relied heavily on the success of the Helios site in Dickens County, which is being billed as Argo Blockchain’s new flagship facility. At Helios, the company anticipates employing a host of eco-friendly and revolutionary technological tactics. The facility is expected to increase the company’s earnings and ability to earn in the future quite significantly.
Such a significant investment in Dickens County may reassure local residents that Argo Blockchain is committed to not just their own success but to the success of the county in general.
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