Argo Blockchain, a Bitcoin miner, plans to raise $25 million to $35 million to fund expansion and reach its target of 4.1 exahash/second (EH/s) hash rate. CEO Peter Wall said on a conference call with investors on Thursday that a measure of computing power on the Bitcoin network by the first quarter of next year.
Argo reduced its hash rate expectations in 2022
Argo reduced its 2022 hash rate expectations from 5.5 EH/s to 3.2 EH/s on Wednesday, citing delays in the delivery and deployment of Intel’s (INTC) Blockscale ASIC chips due to Intel’s redesign. The redesign is intended to increase the efficiency of the machines, similar to Bitmain’s Antminer S19 XP. In contrast, previously, they were geared toward higher hash rates, according to Wall during the call.
The CEO also revealed that the company had reduced its order from Intel.
According to him, the machines developed in collaboration with ePIC Blockchain will be available in the first quarter of next year. He added that there are some excellent “non-traditional” capital-raising opportunities, but shareholders will be “taken care of” in terms of share dilution.
According to Wall, the money the company wants to raise is now less than the $50 million stated in the first quarter, in line with Argo’s lower hash rate guidance.
Argo also intends to sign a fixed-price purchasing power agreement in the coming months once power prices have fallen. This would ensure a stable price for electricity, which is a high cost for miners.
According to the company’s results, Argo has paid spot market prices, which have been high due to macroeconomic factors. According to Wall in the call, this has also meant that it cannot participate in demand response in Texas, which allows miners to sell back their power to the grid during times of high demand.
