Hut 8 completes $ 11.8 million equipment financing loan from DCG subsidiary foundry
Hut 8 will use the loan to purchase 5,400 units of MicroBT’s latest generation machines, increasing its bitcoin mining capacity by 475 PH / s of computing power
TORONTO, January 22, 2021 / CNW / – Hut 8 Mining Corp. (TSX: HUT) announced today that it has completed an equipment finance loan of $ 11.8 million of Rochesterbased at Foundry Digital LLC, a wholly owned subsidiary of Digital Currency Group (DCG). Hut 8 will use all the proceeds from this loan and provide a US $ 2.9 million deposit to order 5,400 units of MicroBT’s Whatsminer M30S bitcoin mining machines, adding 475 petahashes per second (PH / s) to its bitcoin mining capacity over the next six months. The equipment financing will be for a period of 12 months with an annual interest rate of 16.5%. The first batch of machines should be operational before the end of January.
Bitcoin mining industry revenues are at historic highs Tops, in part because of the recent appreciation in the value of Bitcoin. As a result, the demand for bitcoin mining hardware has flew, creating lead times for bulk orders of up to 8 months with manufacturers requiring down payments ranging from 50 to 100% of the order price. Anticipating this problem, Foundry in partnership last year with MicroBT, a leading manufacturer of cryptocurrency mining hardware, to secure future access to the latest generation bitcoin mining hardware for its institutional clients in North America. The loan agreement guarantees Hut 8 delivery of the machines on time thanks to Foundry’s partnership with MicroBT.
“On behalf of the Hut 8 team, we are delighted to partner with Foundry, the leading provider of equipment finance for institutional mining companies. noted Jaime Leverton, CEO of Hut 8. “This partnership builds on Hut 8’s continued commitment to shareholders by alleviating supply constraints and reducing our capital expenditures through a proactive fleet management strategy to achieve balanced portfolio of new cutting edge equipment and very profitable older generations. equipment.”
“We are delighted to be of service to North American publicly traded companies such as Hut 8, who are working transparently to increase Bitcoin’s hashrate in North America, which is also part of our mission to decentralize Bitcoin’s hashrate around the world, ”said Mike Colyer, CEO of the foundry.
About Foundry Digital LLC: A subsidiary of DCG, Foundry Digital LLC is a finance and advisory firm focused on extracting and staking digital assets. With a mission to strengthen decentralized infrastructure for a digital world, Foundry provides North American digital asset extraction companies with capital and intelligence. The foundry is based in Rochester, New York. For more information, please visit Foundrydigital.com
About cabin 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 offers investors direct exposure to bitcoin, without the technical complexity or constraints of buying the underlying cryptocurrency. Investors avoid having to create online wallets, transfer money overseas, and store their bitcoin securely.
The Company’s common shares are listed under the symbol “HUT” on the Toronto Stock Exchange and “HUTMF” on the OTCQX.
Investment Highlights and FAQs:https://www.hut8mining.com/investors.
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SOURCE Hut 8 Mining Corp
For more information: Media contact: Foundry, [email protected]; Cabin 8, [email protected]