REG - Argo Blockchain PLC - Fleet Swap Agreement with Core Scientific

Argo BlockchainAnnouncement

14/03/2022 07:00

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RNS Number : 5888E  Argo Blockchain PLC  14 March 2022

Press Release

14 March
2022

 

Argo Blockchain PLC

("Argo" or "the Company")

Fleet Swap Agreement with Core Scientific for S19J Pro machines

Argo Blockchain plc, ("Argo") a global leader in cryptocurrency mining (LSE:
ARB; NASDAQ: ARBK), is pleased to announce it has signed a fleet swap
agreement with Core Scientific, Inc. ("Core" 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."

Inside Information and Forward-Looking Statements

This announcement contains inside information and includes forward-looking
statements which reflect the Company's or, as appropriate, the Directors'
current views, interpretations, beliefs or expectations with respect to the
Company's financial performance, business strategy and plans and objectives of
management for future operations.  These statements include forward-looking
statements both with respect to the Company and the sector and industry in
which the Company operates.  Statements which include the words "expects",
"intends", "plans", "believes", "projects", "anticipates", "will", "targets",
"aims", "may", "would", "could", "continue", "estimate", "future",
"opportunity", "potential" or, in each case, their negatives, and similar
statements of a future or forward-looking nature identify forward-looking
statements. All forward-looking statements address matters that involve risks
and uncertainties because they relate to events that may or may not occur in
the future.  Forward-looking statements are not guarantees of future
performance.  Accordingly, there are or will be important factors that could
cause the Company's actual results, prospects and performance to differ
materially from those indicated in these statements.  In addition, even if
the Company's actual results, prospects and performance are consistent with
the forward-looking statements contained in this document, those results may
not be indicative of results in subsequent periods. These forward-looking
statements speak only as of the date of this announcement.  Subject to any
obligations under the Prospectus Regulation Rules, the Market Abuse
Regulation, the Listing Rules and the Disclosure and Transparency Rules and
except as required by the FCA, the London Stock Exchange, the City Code or
applicable law and regulations, the Company undertakes no obligation publicly
to update or review any forward-looking statement, whether as a result of new
information, future developments or otherwise. For a more complete discussion
of factors that could cause our actual results to differ from those described
in this announcement, please refer to the filings that Company makes from time
to time with the United States Securities and Exchange Commission and the
United Kingdom Financial Conduct Authority, including the section entitled
"Risk Factors" in the Company's Registration Statement on Form F-1.

For further information please contact:

 

 Argo Blockchain
 Peter Wall                          via Tancredi +44 203 434 2334

 Chief Executive
 finnCap Ltd
 Corporate Finance                   +44 207 220 0500

 Jonny Franklin-Adams

 Tim Harper

 Joint Corporate Broker

 Sunila de Silva
 Tennyson Securities
 Joint Corporate Broker              +44 207 186 9030

 Peter Krens
 OTC Markets
 Jonathan Dickson                    +44 204 526 4581

 jonathan@otcmarkets.com             +44 7731 815 896
 Tancredi Intelligent Communication

 UK & Europe Media Relations
 Emma Valgimigli                     +44 7727 180 873

 Emma Hodges                         +44 7861 995 628

 Fabio Galloni-Roversi Monaco        +44 7888 672 701

 Nasser Al-Sayed                     +44 7915 033 739

 argoblock@tancredigroup.com

 

About Argo:

Argo Blockchain plc is a global leader in cryptocurrency mining with one of
the largest and most efficient operations powered by clean energy. The Company
is headquartered in London, UK and its shares are listed on the Main Market of
the London Stock Exchange under the ticker: ARB and on the Nasdaq Global
Select Market in the United States under the ticker: ARBK.

About Core Scientific:

Core Scientific is one of the largest publicly traded, net carbon-neutral
blockchain infrastructure providers and miners of digital assets in North
America. Core Scientific has operated blockchain infrastructure in North
America since 2017, using its facilities and intellectual property portfolio
that has grown to more than 70 patents or applications for digital asset
hosted mining and self-mining. Core Scientific operates data centers in
Georgia, Kentucky, North Carolina, North Dakota and Texas, and expects to
commence operations in Oklahoma in the second half of 2022. Core Scientific's
proprietary Minder® fleet management software combines the Company's hosting
expertise with data analytics to deliver maximum uptime, alerting, monitoring
and management of all miners in the Company's network. To learn more, visit
http://www.corescientific.com.

As of September 30, 2021, over 50% of the power used in Core Scientific's
operation was generated from non-carbon emitting sources by local power
providers pursuant to long-term power contracts. The Company determines
whether power is generated from non-emitting energy sources from dispatch
reports or grid generation mix reports provided by the Company's power
providers. Based on these reports Core Scientific purchased Green-e certified
renewable energy credits ("RECs") to offset 100% of the carbon produced as a
result of its contracted power. The Company expects to maintain its net carbon
neutrality by increasing its overall use of renewable power and by purchasing
RECs when necessary.

 

 

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