Shares of cryptocurrency mining company Argo Blockchain PLC (LON: ARB) spiked 13.5% higher after signing a cooperation agreement with ePIC Blockchain Technologies giving it priority access to state-of-the-art ASIC mining machines.
Argo will pay an initial sum of $8 million to purchase mining rigs from ePIC and will have priority access to ePIC’s mining machines produced in 2021 and 2022 globally. The company is looking to capitalise on the soaring cryptocurrency prices fueled by Bitcoin’s meteoric rise.
Argo will also help ePIC develop and test future models, given its in-depth understanding of the cryptocurrency mining sector as a leading global miner.
The crypto miner’s shares are up over 770% this year, boosted by the rising bitcoin prices as investors flock to cryptocurrencies to avoid missing out on future gains.
Argo recently announced that it is building a new mining facility in West Texas, with the firm’s management saying they do not see any major fundamental reasons for its share price rally.
The company’s shares fell later today, extending the recent decline to three consecutive days, which is expected given this year’s rally.
Perry Hothi, Argo’s Chief Technical Officer, said: “This will be a game-changer for Argo and ePIC. We are excited about the synergy between our teams. With the expertise of ePIC on the chip side combined with the mining capabilities of Argo, we truly believe this will enable us to be at the cutting edge of mining, from chip to data centre.”
Peter Wall, Argo’s CEO, added: “We are really excited about this agreement and working with ePIC, one of the industry's preeminent ASIC design firms. This partnership will not only give Argo priority in accessing the most advanced mining infrastructure available, but it also highlights our reputation within the sector as an innovative and forward-thinking cryptocurrency miner.”
Argo Blockchain share price.
Argo Blockchain shares spiked 13.47% higher to trade at 320p, rising from Friday’s closing price of 282p.