LONDON, UK: Argo Blockchain plc, a global leader in cryptocurrency mining (NASDAQ: ARBK) has signed a fleet swap agreement with Core Scientific Inc. (NASDAQ: CORZ).
The agreement exchanges Argo’s Bitmain Antminer S19 series bitcoin mining fleet hosted at Core for S19J Pro bitcoin miners previously ordered by Core to be delivered directly to Argo’s new Helios facility. This fleet swap represents approximately 60% of Argo’s total mining capacity and will reduce operational expenses for Argo as part of its ongoing transition to operating its own mining facilities.
The agreement stipulates that Core will deliver the new S19J Pro machines (representing a nameplate capacity of approximately 967 PH/s), to Argo’s Helios facility in Dickens County, Texas and Argo will assign its existing fleet of Bitmain Antminer S19 mining machines (representing a nameplate capacity of approximately 958 PH/s) to Core. The deal also provides for the mutual termination of Argo’s hosting agreements.
To mitigate any temporary loss of hashrate for Argo, the swap of miners will occur in stages as the machines are delivered, which is anticipated to be between May and July of 2022. Upon completion of the swap, Argo will no longer have any mining machines hosted at third party facilities. The agreement will mean the Company also avoids the logistical challenge and downtime associated with relocating its existing machines hosted by Core to its Helios site.
Peter Wall, Chief Executive Officer of Argo, said: “The agreement with Core marks the final step towards our strategic objective of owning and operating all our miners, a path which we chose to pursue in 2020. While we have been pleased with the performance of our miners hosted with Core, this agreement allows us to upgrade our existing fleet and strengthen our mining infrastructure, while greatly reducing the operational risk of relocating between facilities. Finally, we greatly appreciate the hosting services provided by Core Scientific, as well as their flexibility in supporting our strategy shift.”
Mike Levitt, Chief Executive Officer of Core, said: “We are happy to accommodate our long-time customer Argo, and we are pleased that this transaction benefits both parties while accelerating the growth of the Core Scientific self-mining fleet.”