Benzinga | Jan 19, 2022 01:47PM EST

Argo Blockchain Shares Gain On News Of Diversification

* Bitcoin miner Argo Blockchain PLC (NASDAQ:ARBK) has started a non-mining business unit, Argo Labs, to diversify its business and take advantage of other opportunities in the blockchain ecosystem, CoinDesk reports.

* "We've always felt that the blockchain space has more potential than just mining," said Argo CEO Peter Wall in an interview with CoinDesk, adding the new business unit will be "an in-house innovation arm" for the company.

* Argo Labs will mainly focus on network participation and strategic diversification through the efficient deployment of the company's crypto treasury assets.

* The network participation will provide infrastructure support, run nodes and validators and staking in innovative projects.

* The other half of the business will support early stage projects, decentralized finance, NFT and metaverse ecosystem.

* Argo will fund the new business internally and has allocated 10% of its crypto assets in its treasury.

* Argo has also hired Vakeesan Mahalingam as the head of Argo Labs.

* "Our vision at Argo Labs is to support the Company's mining efforts by engaging with the disruptive and innovative sectors of the crypto ecosystem," Mahalingam said.

* Price Action: ARBK shares were up 2.71% at $11 Wednesday afternoon.