Argo Blockchain has started construction on a 'green' cryptocurrency mine in Texas.
Argo Blockchain (ARB.L) has announced that in Texas, it has started building a “green” cryptocurrency mining facility.
The 200-megawatt facility in Dickens County would be fueled primarily by renewable energy, according to the business, which debuted on the London Stock Exchange in 2018 as a vehicle to allow investors to participate into crypto mining.
Argo's mining capacity will be transformed as a result of the transfer, which is slated to be finished in the first half of 2022.
A coin is awarded to a computer that solves a difficult series of algorithms in the crypto mining process.
A decentralised network of computers powers the Bitcoin (BTC-USD) network. Users are enticed to contribute processing power by the prospect of receiving newly minted bitcoin in exchange for accomplishing critical operation tasks.
As the network grows, the amount of power required to create one bitcoin increases automatically, implying that more and more electricity – and thus power – is required to run the network and mine new coins.
Environmentalists have grown more concerned about how bitcoin is "mined" using massive amounts of fossil-fuel-generated electricity.
Bitcoin has "enormous environmental costs," according to a recent Bank of America analysis. According to analysts, the bitcoin network consumes the same amount of energy each year as countries like Greece, the Netherlands, and the Czech Republic. Over the last two years, Bitcoin's energy consumption has increased by an estimated 200 percent.
Argo will create up to 20 new full-time employment in Dickens County as a result of the new site's construction. Argo will have access to up to 800MW of electrical power at the location.
"Texas is a leader in renewable energy generation in the United States, with a flexible grid that produces some of the nation's most competitive and sustainable electricity rates, which is one of the many reasons why Argo Blockchain is excited to partner with the Dickens County community to bring this important project to Texas,” said Peter Wall, CEO of Argo Blockchain.
"As we continue to gain greater control of our mining operations and improve our position as a global leader in sustainable blockchain infrastructure and mining, breaking ground signals an exciting new chapter, and we are anxious to get up and running.”
Dickens County Judge Kevin Brendle said: "I can't express how ecstatic I am to welcome Peter and his crew to Dickens County. The management team's commitment to long-term sustainability and reviving our local economy is inspiring, and we look forward to the great impact they will have on our community in the future."
Due to an early rise in bitcoin prices, Argo became one of London's hottest stocks at the start of this year. Its stock price has risen more than 150 percent since the beginning of the year, but it is now more than 50 percent lower than its all-time high due to a recent drop in crypto prices.
On the back of the news, shares rose 7% to 118.88p on Thursday. It was also helped by Tesla (TSLA) CEO Elon Musk's announcement that the company will likely resume accepting bitcoin for vehicle purchases.
He explained the move at the B-Word conference on Wednesday, which was held by the Crypto Council for Innovation: "Bitcoin appears to be trending toward renewables, and many of the heavy-duty coal facilities that were previously used... have been shut down, particularly in China.
“I'd like to do a little more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a tendency toward increasing that percentage."
If that's the case, he said Tesla will likely readopt bitcoin sales.