Hut 8 Mining Corp. today announced it is partnering with the Bitfury Group to acquire, install, maintain and operate what they say will be North America’s largest bitcoin mining datacenters.
Bitfury, a full-service blockchain technology company, will exclusively provide a bitcoin mining solution comprised of a proprietary mix of hardware, software, installation and operational services to Hut 8.
“This partnership signifies the growing demand for access to Bitcoin investment opportunities across North America,” said Sean Clark, CEO of Hut 8.
“Bitfury’s market share, unmatched computing power, and ability to scale, in combination with a Board of Directors that former hedge fund manager Michael Novogratz and renowned venture capitalist Bill Tai have both agreed to serve on, offers Hut 8 an extreme advantage in a competitive marketplace.”
“We are excited to partner with Hut 8 to expand our activities in the strategic North America market,” Bitfury CEO Valery Vavilov said. “We believe there is a tremendous opportunity to establish North America as one of the most important crypto-currency mining hubs in the world.”
Operating since 2011, Bitfury holds approximately 11 per cent of the technology’s market share. Bitfury manufactures its own Application Specific Integrated Circuit (ASIC) chips, which both removes reliance on third parties and increases performance and translates to lower costs, less space and quieter operations. Bitfury’s portable, containerized datacenter product, BlockBox AC, allows for significantly shortened set-up time required to establish effective Bitcoin mining on a commercial scale.
Upon completion of the partnership, Hut 8 will own and operate what is believed to be the largest cryptocurrency mining farm in North America. In phase I, Hut 8 gains immediate control over 22 Bitcoin mining datacenters operating at 24.2 MW / 165 PH/s. In Q1 of 2018, a public listing on a Canadian stock exchange is expected and phase II of the deal is scheduled to be completed, increasing control to an additional 35 datacenters operating at 38.5 MW / 262.5 PH/s.
Through a combination of existing Bitfury sites and new installations, Hut 8 intends to scale rapidly throughout 2018 with installed capacity set to exceed 60 MW. Hut 8 also maintains the exclusive option to acquire additional datacenters from Bitfury in North America.
Hut 8 is offering approximately 13,200,000 shares on a private placement basis through GMP Securities L.P., equal to approximately CAN$33,000,000, the proceeds from which will be applied towards the funding of phase I of the transaction described above.
Investors have the option of purchasing shares in this private placement round with Bitcoin.