The “world’s largest” crypto mining service for business-to-business companies will be available in the near future. This ambitious project is the scope of a recent strategic partnership between Argo Blockchain and HIVE Blockchain. The two companies have entered into conditional heads of terms. Thus, no money will be exchanged in the transaction. Instead, the companies will swap shares between each other.
The Largest Enterprise-Grade Mining Service for Blockchain Investors
The agreement comes after three months of discussions between the representatives of Argo Blockchain and HIVE Blockchain. Both companies have significant crypto mining facilities. For one, Argo has a 10.5 MW capacity, and HIVE a 45 MW capacity.
However, the companies will combine only a part of their mining capacities to create the B2B mining service provider. And from the legal standpoint, Argo will transfer to HIVE over 44 million of its ordinary shares (15% of the issued share capital). In exchange, they will receive over 16 million HIVE common shares (5% of the outstanding share capital).
The deal will be closed on 30 June, 2019 if the due diligence performed by both parties is finalized to each other’s satisfaction. Addressing their joint project, the Chairman and CEO of HIVE Blockchain, Frank Holmes, said in a press release:
The crypto market is ready for a mining solution focused on enterprise customers who need accountability and transparency and our combination of scale, software and team will be transformational in this growing market.
A Match of Complementary Strengths
Thus, the upcoming B2B mining service will benefit from the key strengths of both partners. Argo Blockchain has an advanced infrastructure in Canada, consisting of software, capacity and team. Also, the company enjoys the extra benefit of competitive prices on the Canadian markets for electricity and hardware.
On the other hand, HIVE Blockchain owns industrial scale production capacities in Iceland, Sweden and Norway. At the same time, the company has a lot of experience in the crypto mining field and has many institutional investors.
For the Executive Chairman of Argo, Jonathan Bixby:
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 further long-term and sustainable fiat-based revenue streams for the company.
Argo-HIVE Project: A Safe and Transparent Mining Platform for Institutional Investors
The Argo-HIVE partnership comes at a moment when B2B companies show a growing interest in digital assets. One clear sign in this direction is the constantly growing price of Bitcoin, from around US$3,600 on February 15 to over US$8,000 on May 15.
However, institutional investors need specific regulatory and compliance requirements that meet their own internal policies. The main issue for such investors is the origin of crypto assets, the more so if these investors are subject to specific regulations.
The proposed B2B mining facility envisioned by Argo Blockchain and HIVE Blockchain would solve this issue and provide transparency and accountability. All the coins acquired by institutional investors through this facility will be virgin (new). Thus, there will be no doubt that they may originate from criminal activities or from areas with a controversial legislation.
Tamara is a marketing and PR professional, enthusiastic about crypto, blockchain and technology in general. She’s the editor at Bitcoin UK.