Hut 8 Adds 16 Bitcoin Mining BlockBoxes to Medicine Hat Facility

Hut 8 Mining (TSXV:HUT) has announced it has added 16 BlockBox datacenters to its bitcoin mining facility in Medicine Hat.

As quoted in the press release:

The additional 16 BlockBoxes, installed in August 2018, increases Hut 8’s bitcoin mining capacity by 19.2 MW and approximately 144 petahashes per second (PH/s). When combined with its operations in Drumheller, Alberta, the Company now operates a total of 73 BlockBoxes, representing an aggregate capacity of 85.9 MWs of fully-funded operating power representing approximately 632 PH/s.

“Hut 8 is working alongside city officials in Medicine Hat to ramp up to full electrical capacity for the additional 16 Blockboxes through the coming weeks,” said Andrew Kiguel, President and Chief Executive Officer of Hut 8. “We prioritize the electrical requirements of the citizens of Medicine Hat and are committed to ramping up our operations without impacting their power needs.”

“The City of Medicine Hat is pleased that Hut 8 is moving forward with the next phase of development,” said the City of Medicine Hat’s Mayor Ted Clugston. “We continue to operate with our City’s best interests in mind, and Hut 8 supports our efforts. They have shown tremendous value to our community, not only by employing nearly 40 local residents, but also by engaging over 30 local contractors in developing their operation.”

The new BlockBoxes, at a cost of US$950,000 per BlockBox, will be financed through a secured loan from Galaxy Digital Lending (“Galaxy”) in the amount of US$16 million (the “Loan Financing”) and a vendor-take-back from Bitfury for 40 percent of the purchase price of the BlockBoxes at $3.75 per Hut 8 common share. Terms of the Loan Financing are LIBOR + 9%. The coupon is payable in USD or bitcoin and has a 30-month term with a bullet repayment. The Loan Financing is scheduled to close on or about September 7, 2018.

Click here to read the full press release.