Less than a month after entering the Canadian stock exchange and a $26 million bought deal with Eight Capital, a Vancouver-based cryptocurrency mining company will soon be on the receiving end of 5,000 additional mining rigs and a 20-megawatt facility in Montana.
HashChain Technology Inc. announced the agreement on its blog this morning, adding the installation of the new rigs will bring its total mining capacity to 8.7 megawatts. The 5,000 mining rigs will be added to its existing arsenal of 100 Dash and 770 Bitcoin mining rigs. HashChain will receive the 5,000 rigs in multiple deliveries between Feb. 28 and May 15, subject to it closing the previously announced $26 million bought deal financing with Eight Capital, a Toronto-based investment dealer.
The company expects to be mining with its 870 rigs by the end of the month.
In a recent statement, HashChain said Vancouver is an ideal location for cryptocoin mining due to its low cost of electricity, access to high-speed internet and cool temperatures. It’s currently using Application Specific Integrated Circuit mining rigs for its mining operations, which are specialized pieces of hardware designed specifically for mining cryptocurrency.
“We are giving investors access to a lucrative cryptocurrency market that they can’t take advantage of themselves,” explained Patrick Gray, CEO and founder HashChain.
HashChain is considering to mine other cryptocurrencies to diversify its mining operations, in addition to developing software capable of switching rig computing power between currencies when one becomes more profitable than the other. Recent fluctuations in the prince of Bitcoin hasn’t concerned the company, according Gray. In a recent blog post, he said HashChain is in this for the long haul.
“When we started our mining operations the price of Bitcoin was approximately $4,000 USD per coin and the price of Dash was approximately $200 USD per coin. At these prices our business model was extremely viable,” he wrote.
According to investingnews.com, HashChain is one of 12 publicly-listed companies dealing with blockchain technology.