Hut 8 will use the loan to purchase 5,400
units of MicroBT's latest generation machines, increasing its
capacity for bitcoin mining by 475 PH/s of computing power
TORONTO, Jan. 22, 2021 /CNW/ - Hut 8 Mining Corp.
(TSX: HUT) announced today that it has finalized an equipment
financing loan of US$11.8
million from Rochester-based Foundry Digital LLC, a
wholly-owned subsidiary of Digital Currency Group (DCG). Hut 8 will
use all proceeds from this loan and provide a USD$2.9 million deposit to order 5,400 units of
Whatsminer M30S bitcoin mining machines from MicroBT, adding 475
petahashes per second (PH/s) to its bitcoin mining capacity over
the next six months. The equipment financing will be a 12 month
term with an annual interest rate of 16.5%.The first batch of
machines is scheduled to be running before the end of January.
Bitcoin mining industry revenue is at historic highs, in part
due to the recent appreciation of Bitcoin's value. As a result, the
demand for bitcoin mining hardware has soared, creating lead times
for bulk orders as long as 8 months with manufacturers requiring
down payments ranging from 50-100% of the order price. Foreseeing
this problem, Foundry partnered last year with MicroBT, a top
manufacturer of cryptocurrency mining hardware, to secure future
access to the latest generation bitcoin mining hardware for its
institutional customers in North
America. The loan agreement assures Hut 8 timely delivery of
the machines through Foundry's partnership with MicroBT.
"On behalf of the Hut 8 team, we are thrilled to be partnering
with Foundry, the leading provider of equipment financing for
institutional mining companies." said Jaime
Leverton, CEO, Hut 8. "This partnership builds on Hut 8's
ongoing commitment to shareholders by mitigating supply constraints
and reducing our capital expenditure with a proactive fleet
management strategy to achieve a balanced portfolio of both new,
cutting-edge equipment and highly profitable prior generation
equipment."
"We are delighted to be of service to publicly-listed North
American companies such as Hut 8, that are working transparently to
grow Bitcoin's hashrate in North
America, which is also a part of our mission to decentralize
Bitcoin's hashrate worldwide," said Mike
Colyer, CEO of Foundry.
About Foundry Digital LLC: A subsidiary of DCG, Foundry
Digital LLC is a financing and advisory company focused on digital
asset mining and staking. With the mission of empowering
decentralized infrastructure for a digital world, Foundry provides
North American digital asset mining businesses with capital and
intelligence. Foundry is based in Rochester, NY. For more information, please
visit foundrydigital.com
About Hut 8: Hut 8 is a bitcoin mining company with
industrial scale operations in Canada. 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 Exchange.
Key investment highlights and
FAQ's: https://www.hut8mining.com/investors.
Keep up-to-date on Hut 8 events and developments and join our
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SOURCE Hut 8 Mining Corp