IoT Group's division for blockchain technologies and local Bifury reseller Royalti Blockchain Group will jointly launch crypto mining facility.
According to the news reports, the new complex will be located in the Hunter Valley and cover 2 ha area. The power supply is planned to be covered by the coal-fired power plant in Redbank. The plant was stopped back in 2014. Under the contract, mining equipment will be provided by Royalti.
The contract price is estimated at more than $142 million (AUD 190 million).
It is worth mentioning that Royalti will receive electricity at reduced costs – AUD 0.11 per kW/h for at least five years. The standard power price is AUD 0.30-0.45. However, the company will receive power discounts only after it acquires and restarts Redbank power plant.
"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," commented IoT Group spokesperson.
For reference, Bitfury Group reportedly announced cost-effective datacenter in Norway in late March. According to the company plans, it will be invested some $35 million into infrastructure development and created some 30 jobs.