Bitcoin Miner Argo Blockchain Looks to Raise $25M-$35M For 4.1 EH/s Hashrate Target
Bitcoin miner Argo Blockchain (ARBK) looks to raise $25 million-$35 million to fund expansion and reach its 4.1 exahash/second (EH/s), a measure of computing power on the bitcoin network, target by the first quarter of next year, CEO Peter Wall said in a investor call on Thursday.
On Wednesday, Argo lowered its 2022 hashrate expectations from 5.5 EH/s to 3.2 EH/s, citing delays in the delivery and deployment of Intel's (INTC) Blockscale ASIC chips as they are redesigning them. The redesign is meant to increase the efficiency of the machines, close to Bitmain's Antminer S19 XP, whereas before they were geared towards higher hashrate, Wall said in the call.
The CEO also disclosed that the firm has cut back its order from Intel. The machines, designed in collaboration with ePIC Blockchain, will arrive in Q1 of next year, he said. There are some good "non-traditional" opportunities for raising capital, but shareholders will be "taken care of" as far as share dilution is concerned, he added.
The funds the company is looking to raise at now is lower than the $50 million it had mentioned in the first quarter, in line with Argo's decreased hashrate guidance, Wall said on Thursday.
Argo is also looking to sign a fixed-price purchasing power agreement some time in the next few months, once power prices have decreased, which would grant it a stable price for electricity, a major cost for miners.
Argo has so far been paying spot market prices which have been high due to macroeconomic factors, the company said in its results. This has also meant it can't participate in demand response in Texas, under which miners can sell back their power to the grid at times of high demand, Wall said in the call.
Read more: Crypto Miner Argo Blockchain Faced Equipment Challenges, Higher Costs in July