Digital Asset Mining Pioneer Hut 8 Acquires Four Canadian Power Plants
by Oskar Trotman
The global energy crisis has hit the crypto industry hard, with high prices and regulations restricting electricity consumption for blockchain mining and hampering the industry’s growth. Hut 8, a Miami-based Bitcoin miner, has come up with an interesting solution: to purchase power plants and generate the necessary power for blockchain mining.
On Tuesday, December 12th, Hut 8’s stalking horse bid made through its subsidiary BidCo to acquire four natural gas power plants located in Ontario, Canada, with a combined capacity of 10 MW, was accepted. The purchasing price has not been made public, and the deal is pending court approval. Expectations are for the power plants to join the Hut 8 portfolio in January 2024. Aside from the gas power plants, Hut 8 is purchasing the North Bay Bitcoin mine from Validus Power Corp.
Reinforcing the Infrastructure-First Strategy
The four natural gas power plants in question are all situated in the Canadian province of Ontario. The facility with the most significant production capacity of 120 MW is located in Iroquois Falls, while Kingston is home to a 110 MW facility. The two remaining power plants, located in Kapuskasing and North Bay, have a generating capacity of 40 MW each, with the latter also including the previously mentioned Bitcoin mine.
Industry experts believe that Hut 8’s decision to buy the Ontario power plants is an excellent strategic move. The company will acquire idle infrastructure and machinery, considering the previous owner of the power plants is in bankruptcy, resulting in the need for a stalking horse bid for the acquisition. Hut 8 will be able to boost its infrastructure-first strategy through additional capabilities and capacities, offering flexibility to develop additional projects.
The new acquisitions will bolster the company’s Bitcoin mining operation, support projects for artificial intelligence, and plans to sell energy back to the market. But this is not Hut 8’s first big Canadian investment. In 2022, the company bought five Canadian data centers.
Hut 8 Is a Prominent Crypto Player
Hut 8 Corp is one of the pioneers of North American digital assets. The company has 11 facilities spread across Canada and the United States. British Columbia and Ontario host five computing data centers offering cloud, machine learning, VFX rendering solutions, and AI, plus six Bitcoin mining facilities located in Alberta on the Canadian side of the border, with Nebraska and New York serving as the U.S. bases.
The executive team is striving to harness the potential of emerging technologies such as blockchain, machine learning, and artificial intelligence. Creating value via infrastructure and energy for Bitcoin mining, operating conventional data centers, and innovative managed services.
On November 30th, Hut 8 Mining Corp officially merged with US Bitcoin Corp. to bolster its industry position as a prominent crypto player. Acquiring the Ontario power plants is another step towards scalability for effective solutions to clients’ computing needs in a turbulent global business climate.
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