Under the terms of the memorandum of understanding, Solar Alliance said in its release on Wednesday (July 11) that will provide up to 10 megawatts of power to NuYen Blockchain at its Murphysboro facility in Illinois.
Solar Alliance Energy (TSXV:SOLR) and NuYen Blockchain have entered into a memorandum of understanding (MOU) so that NuYen can host its cryptocurrency mining equipment at Solar’s facility in Murphsyboro, Illinois.
The clean energy company said in its announcement on Wednesday (July 11) that it will provide to NuYen Blockchain 10 megawatts (MW) of power. According to the release, the Murphysboro facility has initial capacity of 2 MW with the additional 8 MW being a “combination of additional grid connect power and an onsite solar system to be added over time.”
NuYen also has the opportunity to be considered as a tenant for the initial allocated 2 MW, the release states. NuYen is a cryptocurrency solutions provider and said it intends to become a global leader in terms of cryptocurrency mining and the development of blockchain IP by 2020.
“Signing this MOU with NuYen Blockchain supports the business model we have envisioned for the Murphysboro colocation facility and illustrates the long-term potential of this project as a solar-powered cryptocurrency mining center,” Jason Bak, Solar Alliance chairman and CEO said in the release. “We are making solid progress as we plan the upgrades for the Murphysboro facility to ensure it will be a world class colocation center that combines low cost grid connected power, renewable solar power and workforce training as part of the Renewing the Murphysboro Community Through Green Energy Jobs Initiative Solar Alliance has undertaken with the City of Murphysboro.”
Wednesday’s announcement comes roughly a month after Solar Alliance released its plans to develop the solar-powered cryptocurrency mining facility at the Murphysboro location with the help of a solar panel manufacturer.
The most recent press release states the company is still working on June’s MOU with the manufacturer to finalize the steps for the joint development agreement. That agreement will determine preferred panel pricing, sponsor equity provision as well as a credit facility for development funding for future cryptocurrency mining projects. As the joint development agreement has yet to be completed, the identity of the manufacturer has yet to be made public.
“The demand from cryptocurrency mining operations for reliable, competitively priced power is immense and we are perfectly positioned to take advantage of that demand,” Bak said in June.
Solar Alliance is also working to land other potential cryptocurrency mining tenants for its Murphysboro facility and said it plans to announce further hosting and a colocation agreement “in the near future.”
Following Wednesday’s announcement, shares of Solar Alliance remained relatively unchanged from Tuesday’s (July 10) previous close of C$0.055. The company reached a daily high of C$0.06, but settled back in to close Wednesday’s trading session at C$0.55. One day technical analysis on TradingView currently ranks the company as a “Sell” with 13 against, 10 as “Neutral” and 3 in favor of its stock.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.