Terra Pool will be a joint effort between the £970 million UK company and Canadian crypto-miner DMG Blockchain, creating scope for ‘green bitcoin’, Argo said.
The initiative aims to allow miners to produce Bitcoin and other cryptocurrencies in a sustainable way using clean energy, cutting the impact of Bitcoin mining on the environment.
‘As Argo expands its operations through the 2022 launch of its transformational new facility in Texas, we expect that Argo will leverage the abundant supply of solar and wind power in Texas to further differentiate itself as a clean, sustainable miner,’ said FinnCap analyst Michael Hill.
Investors piled in on the news, sending the stock more than 12% higher to 223p, following substantial profit taking through much of March after hitting 279p.
CLIMATE CHANGE CONCERNS
Concerns over the Bitcoin network’s climate change implications have picked up steam recently. A recent note from Bank of America highlighted the issue, saying the network today emits about 60 million tons of carbon dioxide, the same as Greece.
‘A $1 billion fresh inflow into Bitcoin may cause CO2 to rise by the equivalent of 1.2 million internal combustion engine cars,’ the US bank said.
‘Addressing climate change is a priority for Argo and partnering with DMG to create the first “green” Bitcoin mining pool is an important step towards protecting our planet now and for generations to come,’ said Argo Blockchain CEO Peter Wall.
‘We are hopeful other companies within the Bitcoin mining industry follow in our footsteps to demonstrate broader climate consciousness.’
FinnCap plans to update its Argo Blockchain investment case, forecasts, and valuation when the company publishes full year 2020 results in the coming weeks.
Argo Blockchain has been one of AJ Bell’s most heavily traded stocks this year, with buys and sells combined accounting for more than 10% of all trades on the investment platform.