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

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 Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (TSX) in September, becoming the first Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term 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.