Canadian mining firm Hut 8 сообщила, that it has completed securing a loan to finance the equipment purchase of $11.8 million from Foundry, a subsidiary of Digital Currency Group (DCG) led by Barry Silbert.
The Hut 8 loan carries an annual rate of 16.5% for 12 months.
In addition to the funds provided by Foundry, Hut 8 will make a deposit of $2.9 million to pay for an order of 5,400 Whatsminer M30S ASIC miners from MicroBT. DCG’s subsidiary became a partner of the Chinese manufacturer last year.
The Canadian company expects to roll out the first batch of the new devices by the end of January. Deliveries are expected within six months.
Once the full order is placed, the company’s mining capacity will increase by 475 PH/s. The current hash rate stands at 1,039 PH/s.
Hut 8 noted that amid a shortage of mining equipment manufacturers have begun requiring upfront payments of 50% to 100% for orders. The partnership with Foundry helps address access to next-generation equipment, the firm said in a press release.
“Our partnership is based on an unwavering commitment by Hut 8 to overcoming equipment-supply constraints and reducing capital expenditures through a proactive strategy of managing the mining fleet to achieve a balanced portfolio of both new-generation models and high-yield older-generation models,” said Hut 8 CEO Jamie Leverton.
In the context of Foundry’s acquisition, DCG agreed to invest $100 million in it during 2021.
Earlier, Hut 8 raised $8.3 million through an equity stake sale to fund purchases of miners from MicroBT.
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