Crypto miner Argo set to increase electricity supply by 350%

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On August 20, U.K-based Argo announced that they have entered into a new agreement to increase its electricity supply by over 350%. This agreement, reached with GPU.one, will give Argo access to clean power supplies that will provide increases from 14 MW to 64 MW. This will be supplied at Argo’s two data centers: in Québec and its new data center in Eastern Canada.

According to the company, this increase of 50 MW will help to power as many as 15,000 mining machines all at the same time. This will allow its total BTC mining capacity to increase from 505 petahash (PH) to 1.36 exahash (EH). The funding for this increase in energy will be provided entirely by the crypto mining facilities in Québec. As part of the release, Mike Edwards, Executive Chairman of Argo explained:

We are taking another major leap in expanding our mining capacity as the crypto mining industry goes from strength to strength. By 2020, our aim is for Argo to be both the most efficient and the largest publicly listed crypto-miner in the world. Our combination of green energy at competitive rates, a world-class team and the most efficient hardware positions Argo for the long-term.

The news sent the value of their stock soaring, increasing by 17.6%.

Since its initial public offering (IPO) in August 2018, Argo has been on the rise. The company raised over $32 million in that initial offering, as they promised investors that they would make it far easier to mine altcoins like BTC Gold, ETH “from home.”

Since then, they have been seeing a number of positive indicators that the company is moving in the right direction. This included a July report that found that the cryptocurrency mining firm had posted better than expected results for the second quarter of 2019. Since increasing capacity, they were ahead of schedule, as production yielded 1,809 S17 mining units on stream, alongside 1,000 Z11 units.

“Our better-than-expected mining performance reflects both improving industry conditions as well as Argo’s business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn. As a result, we enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency,” Edwards said in a statement at the time.

Now that the company has increased its electrical resources, this should have a dramatic effect on their ability to increase production for the remainder of this year. It would not be surprising to see the second-quarter numbers dwarfed in the final two quarters of this year.