Hut 8 Mining Corp., one of the world’s largest public bitcoin mining companies by operating capacity and market capitalization, is pleased to announce the acquisition of 9 Blockbox ACTM data centers for US$7 million from the Bitfury Group (“Bitfury”) at its facility in Drumheller, Alberta. The acquisition will add approximately 113 petahash per second (PH/s) and 9.9 MW of capacity to Hut 8’s existing operations. This represents an increase of 13.3% to Hut 8’s PH/s output.
The BlockBox ACTM data centers were previously owned by Bitfury. Prior to closing the purchase, the additional 9 data centers will be upgraded to include 12.6 PH/s Bitfury Clarke ASIC chips, manufactured by Bitfury. The upgrades are expected to be completed and operational within 10 weeks of this announcement. Subsequent to the delivery of the BlockBox ACTM data centers, Hut 8 will own 100% of the Drumheller facility.
This additional PH/s will bring Hut 8’s aggregate operating capacity, across all operations, to approximately 963 PH/s and 109.4 MW at full capacity. Subject to approval by the TSXV, Hut 8 intends to finance the acquisition via cash on hand and the sale of a portion of its bitcoin inventory.
“We are pleased to inform shareholders that between the increase in capacity announced last week in The City of Medicine Hat and the acquisition of 9 additional BlockBox AC data centers, that Hut 8 has grown its PH/s output by 19.6% in a short timeline without the need to raise external capital.” said Andrew Kiguel, Chief Executive Officer of Hut 8. “These initiatives will increase our efficiency and decrease our mining cost per bitcoin.”
In addition, Hut 8 intends to reduce its debt by $3.6 million (US$2.75 million) by September 13, 2019. “While still maintaining a significant bitcoin inventory, Hut 8 has made the strategic decision to decrease its financial leverage for a stronger balance sheet and to lower our monthly interest charges.” said Kiguel.
Hut 8 owns and operates two sites in Alberta, Canada utilizing 93 BlockBox ACTM data centers with funded near term capacity of 109.4 MW and 963 petahash per second.