Argo Blockchain purchases 2 facilities in Quebec

U.K.-based Argo Blockchain (LSE: ARB) continues to grow its footprint in North America. Last week, the block reward miner announced it completed the purchase of two data centers in Quebec, Canada. The purchase follows an earlier announcement this year that the firm purchased land in Texas to build a digital currency mining facility.  

In a press release, Argo CEO Peter Wall said, “Argo’s purchase of data centers in Canada represents another milestone for the company as we seek to take greater control over our mining production and mining cost base, while also laying solid foundations for long-term growth.” 

The new facilities house a significant portion of the mining equipment Argo already owns. The data centers’ combined power capacity is 20MW, and they use primarily hydroelectric power as part of their green mining pool initiative launched in late March. 

Argo gained the facilities mainly through non-cash consideration, comprising the assumption of existing bank obligations related to these facilities and the application of an already paid deposit. They did not disclose exact details of the terms. 

The announcement comes as Argo’s share price has been falling as of late. At one point last week, Argo’s shares shed 50% from its February high. Overall, shares of the LSE-listed company are still up 2,900% in the past 12 months.

Potential investors should still remain wary that Argo’s valuation could further decline. When deciding how best to value the company, you should look no further than Argo’s business strategy, which is focused around the high-risk BTC token speculation market.  

Grifters primarily drive the BTC token price speculation markets. The industry’s financial model shares the same attributes as a Ponzi scheme. When it all comes crashing down, even publicly listed companies such as Argo will be unable to escape unscathed.

See also: Equity analyst John Pitts and fintech expert Len Mazur discuss TAAL, Bitcoin and the transaction processing industry

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