Argo Blockchain announces new mining hardware delivers faster-than-expected returns

LONDON: Argo, a UK-based provider of enterprise scale cryptocurrency mining services announced that its strategy to make a major investment in new mining hardware has delivered better than expected returns to date.

The first phase of the investment programme commenced with the purchase of 1,000 Bitmain Z11 Antminer machines, which were ordered in April 2019 and went into production in early May 2019. The Company reports that these machines have achieved a 100% payback on their investment, thereby recouping their full cost in under half the time the Company had estimated.

Based on current mining margins, Argo is also well ahead of schedule to recoup the cost of the 2,267 S17 Antminer machines purchased in April and May of 2019 and which have been in production since May and June.

Mike Edwards, Executive Chairman of Argo, commented: “Our decision to move fast with a major expansion of mining infrastructure is reaping strong returns much earlier than expected.  I am confident this strategy will continue to pay off long-term.”

The Company has granted Matthew Shaw, who was appointed as an independent non-executive director on 17 July 2019, stock options over 1 million ordinary shares of £0.001 each in the Company (Ordinary Shares) at an exercise price of 16p per share. One third of Mr Shaw’s options will vest after 12 months from the date of Mr Shaw’s appointment and 1/36th of the options will vest each month thereafter. These options will expire six years from the date of Mr Shaw’s appointment.

In recognition of his efforts in establishment of the Company, Argo has agreed with Jonathan Bixby, a former director of the Company, to extend the exercise period for 5,953,691 options over Ordinary Shares granted to Mr Bixby in July 2018, and which have already vested, for a period of three years from 30 August 2019.

The Company has received notification from Durban Holdings Ltd of a transfer of 19,350,000 Ordinary Shares from Durban Holdings Ltd to Toro Consulting Ltd, a company in which Jonathan Bixby is interested. The transfer of shares from Durban Holdings Ltd to Toro Consulting Ltd was completed at nil cost as both entities are entities in which Jonathan Bixby is interested.

Durban Holdings Ltd previously held shares on behalf of each of Mike Edwards, the Company’s Chairman, and Jonathan Bixby, a former director of the Company. Following the transfer, Durban Holdings Ltd holds 21,600,000 Ordinary Shares on behalf of Mr Edwards, and no Ordinary Shares on behalf of Mr Bixby.

Following the transfer from Durban Holdings Ltd, the Company received notification from Toro Consulting Ltd that it had sold 10,540,000 Ordinary Shares to a third party. Durban Holdings Ltd is a company jointly owned by Mike Edwards, the Company’s Chairman, and Jonathan Bixby.

Argo Blockchain plc is a global data centre business that provides a purpose-built and flexible platform for mining of leading cryptocurrencies for the enterprise-scale and institutional sectors worldwide from operational centres in Canada. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange

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Mining: The process of verifying transactions and adding them to the blockchain