Canada-based Hut 8 Mining Corp announced the addition of nine Blockbox AC data centers to its mining farm in Drumheller, Alberta, making the facility fully operational. Hut 8 purchased the data centers from the Bitfury Group for US$7 million. The acquisition added nearly 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,” Andrew Kiguel, CEO of Hut 8, said in a statement. “This upgrade was funded from Hut 8’s balance sheet, which remains strong after this transaction and prior debt repayments.”
The nine data centers were upgraded to include 12.6 PH/s Bitfury Clarke ASIC chips. The additional PH/s brought Hut 8’s total maximum operating capacity, across all operations, to nearly 963 PH/s and 109.4 MW at full capacity.
The purchase comes just days after Hut 8 confirmed it successfully refinanced its current credit facility with a new loan with Genesis Global Capital. The new US$15 million credit facility with Genesis replaces an earlier US$14 million loan with Galaxy Digital Lending.
The terms of the new loan are a fixed 9.85% coupon per annum with an 18-month term with a bullet repayment.
“This refinancing is a major step in improving Hut 8’s cash flows and will reduce our interest costs by $426k (US$323k) per year,” said Jimmy Vaiopoulos, chief financial officer of Hut 8. “Our ability to refinance debt on better terms is a testament to our performance and ability to stand out as a low-cost bitcoin miner.”
“Utilizing lower interest rates as part of this refinancing, holding a significant bitcoin balance, and cash on hand, our balance sheet continues to be a distinct advantage for Hut 8,” Kiguel said.
The Genesis protocol upgrade on February 4, 2020 is a monumental step in the history of Bitcoin, and will see BSV returned as close as possible to the original protocol as envisioned by Satoshi Nakamoto. Visit the Genesis Hard Fork page to learn more.
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