The mining corp, Vancouver’s Hut has announced their plans to create the largest North American, Bitcoin Mining Datacenter. The bold action will place the Canadian firm partner with mining specialist, Bitfury who will provide the building of the datacenter.
They will also supply all needed hardware, software and maintenance. The deal is projected to be completed in 2018 depending on how fast funds can be raised.
Largest Mining Operation in America Now Underway
Hut 8 announced the details of the multi-level building of the data-center, designed to absolutely dominate the American Cryptocurrency mining industry. The project is said to start with the purchase of twenty-two datacenters that will be used to supply the Vancouver firm over 24 MW of hashing power.
The second part of the process will then see another thirty-five datacenters being setup, each supplying another 38.5 MW of power. Hut 8’s success is basically dependent on their public listing on the Canadian stock exchange.
Bitfury’s market share give computing power that cannot be rivaled. It will give the ability to scale. Two of the members of the Board of Directors also offers a powerful advantage. Michael Novogratz, former hedge fund manager and highly-regarded venture capitalist Bill Tai both agree to serve, and they apparently bring a lot to the table.
The True Cost of Mining Digital Gold
After the deal was set with Bitfury, Hut 8 gained the ability and option to start buying datacenters at an amazing rate. Hut 8 apparently is short on the needed funds to complete the project and bring their vision to fruition. As of now, they are offering their 13.2 million shares through GMP Securities. The shares are valued at more than $26 million dollars.
As long as the projected deal is completed, which should happen in 2018, Hut 8 will be able to lay stake to operating the largest operation in North America. They will have a total output of more than 60MW.
Bitfury is well known for it’s mining rigs and live testing Bitcoin transactions on the Lightning Network. They are also the company that mined the first 1mb+ segwit block, are the creators of Blockbox which is a mobile unit for mining Bitcoin. And they are considered one of the best companies when it comes constructing data centers and semiconductors.
The news now illustrates how far cryptocurrency mining has come when it was just a small-scale operation for hobbyists and micro, mining pools. Bitfury and Hut 8’s partnership puts a geographical shift in power. Farms have been sprouting up all over the world in places like Russia and Europe and North America. China currently has the grip on mining, but it looks as though that will be fading soon.
The questions are, will China actually lose its grip on mining or do these type or partnerships increase centralization due to massive mining farms and even hardware manufacturing. It’s going to be interesting to see how much this partnership will effect the industry next year.