HIVE Crypto Mining Company and Argo Blockchain Partner to Build the Biggest Crypto Mining Operation
Canada based Hive blockchain technologies, a digital currency mining facilities operator, announced on the 13th of May 2019, that they have:
“entered a non-binding letter of intent and heads of terms and a share swap agreement with Argo Blockchain PLC”
This strategic partnership is to provide the largest business to business cryptocurrency mining facility for large scale institutional customers.
More Mining Power
It also provides MaaS (Mining as a Service) to clients who require it for digital currency mining in cryptocurrency friendly regions in Europe and North America.
HIVE’s Interim Executive Chairman and Interim CEO, Frank Holmes said:
“We are excited about this strategic partnership and our analysis indicates that Argo is significantly undervalued. They have a healthy cash position with more than £16 million, as of December 31, 2018, and since then Argo has deployed some of the most efficient ASIC chips to expand Bitcoin operations while cryptocurrencies continue to rebound from lows seen at the beginning of 2019. In our view, the crypto market is ready for a mining solution focused on enterprise customers that require accountability and transparency. Our combination of scale, software and teams will be transformational in this growing market.”
Jonathan Bixby the Executive Chairman of Argo stated:
“This deal makes strategic sense and demonstrates the intrinsic value of our business, our vision, and existing investment. The alliance is transformational for Argo and will deliver long-term and sustainable fiat-based revenue streams.”
The Partnership Benefits
This partnership will take advantage of Argo’s strengths in Canada with respect to its team, capacity, software and hardware infrastructures in Quebec and HIVE’s large scale production capacity in Sweden and Iceland.
It also leverages Argo’s assets in Norway as well as HIVE’s vast experience in cryptocurrency mining and the blockchain technology.
Per the agreement, Argo will get about 5% of HIVE’s outstanding share capital, and Hive gets 15% of Argo’s outstanding share capital.
This agreement involves no cash exchange from either Argo or Hive and is to end on the 30th of May, 2019 after all conditions are met satisfactorily.