Company: ARBK
Filing Date: 2025-04-22
Form Type: 20-F/A
Source: 0001104659-25-037403
Chunk: 51

Company: Argo Blockchain Plc
Filing Date: 2025-04-22
Form: 20-F/A
Chunk 51
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Acquisition of DPN LLC

On 8 March 2022 the Group completed the acquisition of DPN LLC to acquire acres (with option to purchase a further acres) of land in West Texas for the construction of a 200MW mining facility for completion mid-2023.

The acquisition of DPN LLC, effectively comprising the land acquisition in West Texas, has been treated as an asset acquisition in the financial statements. The consideration for the acquisition was an initial price of GBP m, satisfied by the issue and allotment to the shareholders of DPN LLC of new ordinary shares in Argo, with up to a further m of shares payable if certain contractual milestones related to the facility are fulfilled.

The initial issue and allotment of GBP m has been recognised based on the estimated fair value of assets received at acquisition in line with IFRS 2 Share-based payments. Contingent consideration balance of this business combination has been subsequently measured at fair value with changes recognised in profit and loss in line with IFRS 9. The fair value of assets acquired was assessed in line with independent valuations of the site by CBRE as well as external financial due diligence and financial modelling. Financial models used historical power purchase assumptions for the area and the Company’s internal hash rate and Bitcoin pricing assumptions to help the Company evaluate the financial benefits of developing a Bitcoin mining operation on the land. Work performed by DPN LLC from August 2019, when it purchased the land, to March 2022, when it sold the land to the Company, to prepare for a Bitcoin mining operation added to the value of the land for that purpose.

Consideration at 8 March 2022

| ​                                                | ​ |      ​ |
| ​                                                |   |  $’000 |
| Share based payment                              | ​ |  4,355 |
| Contingent consideration to be settled in shares |   | 10,710 |
| Total                                            |   | 15,065 |

Allocated as follows

| ​                                                | ​ |      ​ |
| ​                                                |   |  $’000 |
| Tangible fixed assets (Asset under construction) | ​ | 15,065 |
| Total                                            | ​ | 15,065 |

F-34

ARGO BLOCKCHAIN PLC

#### Property, Plant and Equipment Impairments and Loss on SaleThe Group has a single line of business, crypto mining. As such, the Group hasonecash generating unit (CGU). At each reporting date, the Group