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TransAlta Renewables and BitCity to Develop Crypto-mining Facility
Jun. 19, 2018 03:55PM PST
Blockchain Investing
According to a press release issued on Tuesday, the companies have agreed upon a five-year power purchase agreement with the potential for a five-year extension.
TransAlta Renewables (TSX:RNW) and BitCity have entered into a partnership to develop an industrial-scale cryptocurrency-mining facility, the companies announced on Tuesday (June 19).
According to the press release, the companies have entered into a five-year agreement power purchase agreement (PPA) that entails an additional five-year extension with a fixed power rate.
The PPA effectively provides BitCity with up to 22 megawatts (MW) of power and increasing to 35 MW in phase two with a possibility for additional power in the future.
Details including leasing agreements for existing buildings pace and the land for mobile mining have yet to be finalized between the companies, but the release states the facility will be located at TransAlta’s Bluewater Energy park in Sarina, Ontario.
“Building on our expertise in cogeneration and the scale of our operations in Sarnia, this agreement represents a new opportunity for TransAlta Renewables in the financial technology space,” John Kousinioris, president and CEO of TransAlta Renewables said in the release.
BitCity CEO Brandon Keks said the location is “perfectly suited” for its future crypto-mining facility and that the site has the potential to stand out in the cryptocurrency-mining sector.
The Bluewater Energy Park has the capacity to provide steam and electrical power from the 506 MW plant. The park is a fully serviced 108.5 hectare site and currently has 68.8 hectares available for new manufacturing.
Earlier this year it was announced that CryptoGlobal (TSXV:CPTO) intended to acquire BitCity, but abandoned those plans in early June to pursue a merger with HyberBlock Technologies.
Following the announcement on Tuesday, shares of TransAlta didn’t react favorably by dipping slightly by 0.24 percent to close the trading period at C$12.45. TradingView.com technical analysis currently pegs the company as a “Sell” with 9 against, 9 as “Neutral” and 8 ranking the company as a “Buy.” Current moving TransAlta has a 52-week high of C$15.85 and a low of C$11.37.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.