Hut 8 Purchases 9 Data Centers from Bitfury for $7 Million

Friday, 29/11/2019 | 12:17 GMT by Arnab Shome
  • With this, the crypto mining company closed the expansion of its Drumheller facility.
Hut 8 Purchases 9 Data Centers from Bitfury for $7 Million
FM

Hut 8 Mining Corp, a Canadian company involved in digital asset mining, on Thursday announced the acquisition of nine Blockbox AC data centers from the Bitfury Group, costing $7 million.

The purchase completed the setup process of its mining facility at Drumheller, a town in the Canadian Alberta province, which is now fully operational.

“This upgrade allows Hut 8 to take 100% ownership of the Drumheller facility, which will bring further cost savings,” said Andrew Kiguel, Chief Executive Officer of Hut 8. “This upgrade was funded from Hut 8’s balance sheet, which remains strong after this transaction and prior debt repayments.”

Expanding operations

Per the company, the recent purchase has contributed 16 percent of capacity to Hut 8’s existing operations. In total, Hut 8 owns and operates two sites in Alberta, Canada, utilizing 94 BlockBox AC data centers with an operating capacity of approximately 110 MW and 963 PH/s.

The Canadian company detailed that the additional nine data centers were upgraded to include 12.6 PH/s Bitfury Clarke ASIC chips and were the last data centers added to the Drumheller facility. The additional PH/s brought Hut 8’s aggregate maximum operating capacity, across all operations, to approximately 963 PH/s and 109.4 MW at full capacity.

Hut 8 was launched in December 2017 in partnership with the Bitfury Group, when the crypto market touched its peak. Since then, the company mined 12,305 Bitcoins, which it reported in its quarterly earnings report ending in September 2019.

The mining company also listed its stocks on the Toronto Stock Exchange (TSX) in September, becoming the first Blockchain company to list its shares under “TSX Sandbox.”

Similar to Hut 8, other mining giants are now also setting up bases in North America. ASIC-manufacturer Bitmain recently launched a crypto mining facility in Texas with an initial capacity of 25MW but can be expanded to 50MW.

Hut 8 Mining Corp, a Canadian company involved in digital asset mining, on Thursday announced the acquisition of nine Blockbox AC data centers from the Bitfury Group, costing $7 million.

The purchase completed the setup process of its mining facility at Drumheller, a town in the Canadian Alberta province, which is now fully operational.

“This upgrade allows Hut 8 to take 100% ownership of the Drumheller facility, which will bring further cost savings,” said Andrew Kiguel, Chief Executive Officer of Hut 8. “This upgrade was funded from Hut 8’s balance sheet, which remains strong after this transaction and prior debt repayments.”

Expanding operations

Per the company, the recent purchase has contributed 16 percent of capacity to Hut 8’s existing operations. In total, Hut 8 owns and operates two sites in Alberta, Canada, utilizing 94 BlockBox AC data centers with an operating capacity of approximately 110 MW and 963 PH/s.

The Canadian company detailed that the additional nine data centers were upgraded to include 12.6 PH/s Bitfury Clarke ASIC chips and were the last data centers added to the Drumheller facility. The additional PH/s brought Hut 8’s aggregate maximum operating capacity, across all operations, to approximately 963 PH/s and 109.4 MW at full capacity.

Hut 8 was launched in December 2017 in partnership with the Bitfury Group, when the crypto market touched its peak. Since then, the company mined 12,305 Bitcoins, which it reported in its quarterly earnings report ending in September 2019.

The mining company also listed its stocks on the Toronto Stock Exchange (TSX) in September, becoming the first Blockchain company to list its shares under “TSX Sandbox.”

Similar to Hut 8, other mining giants are now also setting up bases in North America. ASIC-manufacturer Bitmain recently launched a crypto mining facility in Texas with an initial capacity of 25MW but can be expanded to 50MW.

About the Author: Arnab Shome
Arnab Shome
  • 6420 Articles
  • 84 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6420 Articles
  • 84 Followers

More from the Author

CryptoCurrency

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}