Hut 8, the Bitcoin mining company will officially be operating from now on in Medicine Hat, Alberta, Canada.
The company, which receives backing from Bitfury, announced Monday that it signed a deal with the city of Medicine Hat to lease land and supply 42 megawatts of electricity for mining operations. Instead, Hut 8 will bring in $100 million to the local community through their construction project.
The company released in a press release that the new building is completely funded, and the edifice will be added to Hut 8’s existing building in Drumheller, which consumes 18.7 megawatts for powering its mining rigs.
Hut 8 and the City’s contract will be effective for a period of 10 years, and will become operative after several regulatory organisations give their approval on the company’s work.
Bill Tai, chairman of Hut 8’s Board of Directors, said the agreement is a major step in the company’s procedures to commence the usage of 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,” said Tai in his 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.”
For the construction of its facilities, Hut 8 will employ over 100 workers, with 42 of them remaining to be hired full-time so that they can run and supervise the mining operations. According to the press release, Hut 8 will employ from the local community, so it can help bring more jobs and thus more capital in to the city. The project is estimated to be finalized by the third-quarter of this year.
The leasing deal comes after the company declared that it would be listed on the Toronto-based TSX Venture Exchange, where at the moment its shares are traded publicly. While other cities have outright rejected mining companies, the city of Medicine Hat decided to accept Hut 8 in hopes that it will help their financial development.