Blockchain infrastructure provider BitFury Group today announced a partnership deal with Hut 8, a Bitcoin mining company, to set up a project that they described as probably the largest cryptocurrency mining farm in North America.
Bitfury, a blockchain company with offices in the United States and overseas, will provide a full package of mining services to Hut 8 including a proprietary mix of hardware, software, installation and operational services.
The blockchain technology company, which currently controls 11 percent of the technology’s market share, plans to build a highly efficient and powerful data center that will be phased in progressively to reach an installed capacity of more than 60 MW upon completion of the project.
According to a join statement, the first phase will see Hut 8 acquiring over 22 Bitcoin mining datacenters operating at 24.2 MW / 165 PH/s. Subsequently, the second phase will involve a public listing on a Canadian stock exchange together with extending Hut 8’s control to an additional 35 data centers operating at 38.5 MW / 262.5 PH/s.
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
BitFury Group provides hardware and software around blockchain technology and this will not be its first major venture outside the US. The company, which started out as a Bitcoin miner, has grown to become one of the largest private infrastructure providers in the blockchain ecosystem.
Considering the sheer size of Hut 8’s data center, the company noted that it plans to raise CAD 33.0 million through offering nearly 13 million shares on a private placement basis, the proceeds of which will be used to fund the mining facility.
Bitcoin mining is a very competitive industry as miners worldwide are verifying transactions while securing the network for economic incentives. The global demand is also growing in lockstep with Bitcoin price, which doesn’t show signs of slowing.
Remarking about the potential to offer blockchain technology in North America, Bitfury Group CEO Valery Vavilov stated: “We are excited to partner with Hut 8 to expand our activities in the strategic North America market. We believe there is a tremendous opportunity to establish North America as one of the most important crypto-currency mining hubs in the world.”
Sean Clark, CEO of Hut 8, added: “This partnership signifies the growing demand for access to Bitcoin investment opportunities across North America. 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.”