Hut 8 Mining Announces Closing of Drumheller Expansion
Hut 8 Mining Corp. (TSX: HUT) (OTCQX: HUTMF) ("Hut 8" or "the Company"), one of the world's largest public cryptocurrency mining companies by operating capacity and market capitalization, announced today that its purchase of 9 Blockbox AC data centers for US$7 million from the Bitfury Group ("Bitfury") at its facility in Drumheller, Alberta is now fully operational. The acquisition added approximately 16% of capacity to Hut 8's existing operations.
"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."
The additional 9 data centers were upgraded to include 12.6 PH/s Bitfury Clarke ASIC chips, manufactured by Bitfury. These data centers were the last ones at the Drumheller facility not owned by Hut 8, and this purchase resulted in Hut 8 owning 100% of the 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.
Since beginning its
mining operations in December 2017, Hut 8 has mined over 12,305 bitcoins up to the latest quarter ending September 30, 2019. Hut 8's current capital structure consists of 90,438,009 common shares outstanding, 2,882,222 warrants and 900,000 options.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, inclusive of Bitfury Holding BV, one of the world's leading full-service hardware and software
blockchain technology companies. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 94 BlockBox AC data centers with operating capacity of approximately 110 MW and 963 PH/s.
Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company's common shares are listed under the symbol "HUT" on the TSX and as "HUTMF" on the OTCQX