The city of Medicine Hat through its mayor Ted Clugston announced a new lucrative deal it has entered with Hut 8 Mining, (arguably) “the largest publicly traded cryptocurrency miners in North America.” The city has signed an agreement to supply the ‘mining’ facility with 42 Megawatts of electricity and lease them 11 acres of land where the facility will be built for 10 years.
Hut 8 is based in Toronto, Canada and already has an operational facility at Drumheller, Alta that has so far mined over 750 Bitcoins. The facility runs on 18.7 Megawatts of electricity. The company is said to have budgeted $100 Million for the construction. The facility is expected to be up and running in September.
The Medicine Hat facility will be Hut 8’s development and data Center according to the company’s CEO Sean Clark.
Why Medicine Hat
The city of Medicine Hat generates its own electricity from natural gas. The city has leased Hut 8 an eleven acre land next to the power plant. According to Bill Tai Hut 8 Mining board chairman,
“[Medicine Hat] offers stable, cost-competitive utility rates and has been very welcoming and supportive of Hut 8’s fast-paced growth plans.”
Economic Growth and diversification
The deal with Hut 8 will reportedly boost the city’s economy big time. Over 100 jobs will be created during the construction phase and another 42 operational jobs for electricians, general laborers, security and system technicians upon completion of the project. Bitcoin mining is an energy intensive endeavor. With the completion of the Medicine Hat facility, Hut 8 will be paying for a total of 60.7 megawatts to the city.
The city mayor is thrilled by the diverse industries seeking to operate in Medicine Hat. He says;
“It’s nothing against the oil and gas industry, but we’ve always been talking about diversification,” said Clugston. “I can’t imagine anything that’s much more diverse than [this company] and the cryptocurrency and the mining, as well as the blockchain technology.”
Hut 8 has had a good run with its Drumheller farm, this new deal with the city of Medicine Hat confirms that the company is truly a force to be reckoned with now more than ever in the cryptos mining business.