Hut 8 Purchases 9 Data Centers from Bitfury for $7 Million
by Arnab ShomeHut 8 Mining Corp, a Canadian company indulged 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.
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“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.
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The Canadian company detailed that the additional 9 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 set 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.