Hut 8 Mining Corp based in Vancouver recently announced their ambitious scheme to create “North America’s largest bitcoin mining datacenters,” partnering with mining specialist group Bitfury which will provide hardware, software, and maintenance. The deal is expected to be completed in 2018, but it may change depending on when the necessary funding has been raised.
America’s biggest mining operation
On December 4, Hut 8 released a statement revealing details of a multi-stage process to dominate the cryptocurrency mining industry in America. This project will run once 22 datacenters are acquired. These data centers will furnish the British Columbia-based firm with over 24 MW hashing power.
The second part of the deal will see an addition of 35 data centers with 38.5 MW power. As of now, Hut 8 is dependent on a public listing on the Canadian Stock Exchange.
Hut 8 CEO Sean Clark explained, “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.”
The price of mining
Hut 8’s deal with Bitfury is giving them the option to purchase data centers such as mining farms exclusively from Bitfury. As of now, Hut 8 still lacks the funds to complete the project – because of this, it is offering 13.2 million shares via GMP Securities LP, valued at $26 million USD.
While it is still subject to change, Hut 8 will be able to claim to operate the largest mining operation in North America with a total output of over 60 MW if they are able to complete the protracted deal. While it is known for the successful live testing of bitcoin transactions on the Lightning Network, the company is more known for its mining rigs. Bitfury also mined the first 1MB+ segwit block and is responsible for mobile bitcoin mining unit Blackbox. At the same time, the group specializes in data center construction and semiconductors.
Lately, we have seen stories on how far cryptocurrency mining has come since the time when it was only accessible to hobbyists and small mining pools. Bitfury and Hut 8 shows a shift in power and the influence the industry now has. Their geographical location shows that mining is no longer confined to China as more farms operate in Russia, Northern Europe, and North America.