The graded dirt drive, concrete culvert, and guard shack currently in place off FM193 in northwest Dickens County, Texas, might not strike the casual observer as a gateway to the hottest financial trend on the planet these days.
But within months, UK-based Argo Blockchain, which purchased the property several months ago and broke ground earlier this month, expects to have secured warehouses onsite chock-full of high-speed computer processors cranking out complex digital operations. Such bitcoin mining rigs have the capacity to generate enormous profits in cryptocurrency— and they need an enormous supply of cheap electrical power to do it.
Dickens County Judge Kevin Brendle confirmed that local officials have been working closely with Argo representatives on a mutually beneficial to the firm and the county, after Argo worked with the Texas Comptroller’s Office to qualify for certain designations. With the construction of the facility, Argo is expected to add up to 20 new, full-time jobs in Dickens County. Brendle said that at least some of these will be in grounds, security and computer sectors.
The 125,000-sq.-ft., 200-megawatt (MW) facility should also have a strong impact on the county’s tax base, said Brendle. No county tax abatement incentives were involved. Renewable energy sources, however—such as the nearby McAdoo Wind Farm—are very important to Argo and other bitcoin miners across the globe.
Argo Blockchain CEO Peter Wall said, “Texas is a leader in renewable power generation in the United States with a flexible grid, producing some of the most competitive and most sustainable electricity rates in the nation, which is one of the many reasons why we look forward to partnering with the community in Dickens County to bring this important project to Texas.”
Argo representatives said, “Argo did extensive due diligence to choose our site, because of the mix of access to renewable energy and the ability for our region to service the new facility.”
“Words cannot begin to explain how thrilled I am to welcome Peter (Wall) and his team to Dickens County,” Brendle said. “The management team’s commitment to sustainability and reinvigo rating our local economy is exciting, and we look forward to the continued positive impact they will bring to our community.”
The first phase of construction is scheduled to be completed by the end of first quarter 2022, said Brendle. In addition, plans for an office and overnight housing facility were recently added, and the judge has worked with the project manager to consider a few provisions for local economic development opportunities and small business opportunities.
Last week Argo, which has been publicly traded on the London Stock Exchange since 2018, announced plans for an initial public offering (IPO) of stock in the U.S. “According to a confidential draft registration statement filed Tuesday with the U.S. Securities and Exchange Commission, or SEC,” reported industry site Cointelegraph, “Argo has proposed a dual-listing and initial public offering of American Depositary Shares, expected to occur in the third quarter of 2021.”
According to a June 30 post at www.theblockcrypto.com, Argo secured a $20 million six-month loan to build out its Dickens County facility. “The loan is from crypto financial services firm Galaxy Digital and is backed by part of Argo’s bitcoin holdings, meaning the firm won't have to sell its bitcoin for the Texas expansion.”
Argo currently has three mining facilities in Canada with a total capacity of 35 MW, where it mines bitcoin and privacy-oriented cryptocurrency Zcash, according to its website.
Company representatives hope to participate in a welcome event in Dickens County early this fall. Until Argo’s human resources office announces more details, Brendle encourages inquirers to contact the county judge’s office.
- Log in or Subscribe to post comments.
