Publicly traded Bitcoin mining company Hut 8 (HUT) has announced the finalizing of an $11.8 million loan from Digital Currency Group’s wholly-owned mining subsidiary Foundry Digital. The bitcoin mining farm operator intends to expand its mining operations. Hut 8 will use all proceeds from this loan to order 5,400 units of the Whatsminer M30S bitcoin mining machines from MicroBT. One Year Loan Deal With An Annual Interest Rate of 16.5%: Hut 8 The first batch is scheduled to run by the end of January while the full delivery is expected to arrive over the coming six months. After full deployment, Hut 8’s total hash power is expected to reach 1,300 petahashes per second (PH/s). Hence, it will boost the company’s computing power by 475 petahashes per second. The mining company currently controls roughly 825 PH/s. The financing will be a one year term with an annual interest rate of 16.5% with the mining equipment pledged as collateral. Full payment of the order also includes a $2.9 million deposit in addition to the loan, provided by Foundry. In the announcement release, Jaime Leverton, CEO, Hut 8 stated: “On behalf of the Hut 8 team, we are thrilled to be partnering with Foundry, the leading provider of equipment financing for institutional mining companies.” said Foundry Digital Is a Subsidiary of DCG Foundry Digital LLC is a wholly-owned subsidiary of DCG, a financing and advisory company focused on digital asset mining and staking. Mike Colyer, CEO of Foundry, commented on the deal: “We are delighted to be of service to publicly-listed North American companies such as Hut 8, that are working transparently to grow Bitcoin’s hashrate in North America, which is also a part of our mission to decentralize Bitcoin’s hashrate worldwide.” Hut 8 is a bitcoin mining company with industrial-scale operations in Canada. The firm also provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. HUT 8 shares are listed under the symbol “HUT” on the TSX and as “HUTMF” on the OTCQX Exchange.
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