Bitcoin mining firm Hut 8 is officially setting up shop in Alberta, Canada.
The Bitfury-backed company announced Monday that it had secured a deal with the city of Medicine Hat to both lease land and receive 42 megawatts of electrical power for a new mining facility. In turn, Hut 8 will inject $100 million into the local community by way of a construction project.
The new building is fully funded, the company announced in a press release, and the facility will join Hut 8's existing, smaller building in Drumheller, which uses 18.7 megawatts to power its array of machines.
The contract between Hut 8 and the City will last 10 years, and will begin after several regulatory agencies sign off on the company's work.
Bill Tai, chair of Hut 8's Board of Directors, said the agreement is a key step in the company's plans to start using its BlockBox Data Centers.
"CMH offers stable cost-competitive utility rates and has been very welcoming and supportive of Hut 8's fast paced growth plans," he said in a statement. "We're excited to work with the City of Medicine Hat to introduce a new industry, with new revenue channels for the City and its residents."
To build out its facilities, Hut 8 will hire some 100 workers, with 42 employees set to be hired full-time in order to run the mine. Hut 8 will recruit from the local community, according to the press release.
The land deal comes after the company announced it would be listed on the Toronto-based TSX Venture Exchange, where its shares are now publicly traded.
Construction image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.