Australian Blockchain Firm Strikes $190 Million Crypto Mining Deal

2 months ago admin2 Comments Off on Australian Blockchain Firm Strikes $190 Million Crypto Mining Deal
Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

Sydney-based IoT Group, an ASX-listed firm, has inked a deal with the Australian reseller of Bitfury’s bitcoin mining hardware to kickstart a mining operation if it can get a decommissioned coal plant up and running again.

In an announcement and disclosure on the Australian Securities Exchange (ASX) on Monday, the IoT Group revealed its subsidiary IoT blockchain had signed a ‘conditional binding terms sheet’ with Royalti Blockchain Group, the Australian reseller of bitcoin mining hardware giant Bitfury.

The proposed deal sees the IoT Group envisioning the development of a ‘Blockchain Applications Complex’ (BAC) in Hunter Valley, powered by the Redbank power station – a decommissioned coal plant. As reported previously, the IoT group partnered Hunter Energy in the endeavor with the latter working to acquire the power station to build the proposed mining center across two hectares. If successful, the IoT Group claims it will be able to draw energy at wholesale prices from the power station.

The deal is said to be over AUD$190 million according to a media release by the IoT Group, although disclosure compliance rules see no details of the figure present in the official ASX announcement.

According to the terms of the agreement, Royalti would install its Bitfury mining hardware at the facility provided by the IoT Group, alongside 20 megawatts of power for at least five years at 11 cents per KWh. Retail rates, in comparison, cost anywhere between 30c to 45c/KWh.

Cheap coal power could soon power cryptocurrency mining in Hunter Valley, Australia.

However, it is imperative that Hunter Energy acquires and recommissions the now-defunct Redbank Power Station to power its cryptocurrency mining operation. The coal plant was shut down in 2014.

In its ASX announcement, IoT Blockchain said:

Investors should note that the Terms sheet is subject to and conditional upon the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition of all right, title and interest in the Redbank Power Station to the absolute satisfaction of IoT…If Hunter does not complete its acquisition…or if competition does not occur under the terms sheet…the transaction…will not proceed.

The terms for a legally binding Power Purchase Agreement will occur no later than October 1, 2018, the announcement added.

Featured image from Shutterstock.

Follow us on Telegram.

Advertisement

cryptocoinsnews.com

Related Posts

Bitcoin Trader Made Millions Trading on Margin — And Then Lost It All

admin2 6 months ago
Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. A bitcoin trader allegedly lost nearly 200 bitcoins during the recent cryptocurrency market correction, which... Read More

Crypto Exchange Coinone Taps Ripple for New Remittance Service

admin2 2 months ago
South Korean cryptocurrency exchange Coinone is turning to Ripple’s enterprise blockchain network for cross-border payments. Coinone Transfer, an arm of the exchange that focuses on remittances, joined RippleNet on Monday, making it... Read More

$1 Million Bitcoin Ransom Reportedly Paid for Kidnapped EXMO Executive

admin2 7 months ago
Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. On December 26, 40-year-old IT specialist and bitcoin exchange executive Pavel Lerner was kidnapped in Kiev,... Read More

Bitcoin Price Flash Crashes to $10,075 as Market Goes Berserk

admin2 8 months ago
Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. The bitcoin price plunged by more than $1,300 in minutes during a flash crash on bitcoin... Read More