IoT Group wholly owned subsidiary, IoT Blockchain, has inked a deal that paves the way for the company to become the world’s largest cryptocurrency miner. The subsidiary has entered into a conditional binding Terms Sheet with Royalty Blockchain, Bit Fury’s authorized Australian integrator, for the supply of equipment and power needed for the mega cryptocurrency mining operation.
IoT Group Cryptocurrency Mining Operation
According to media reports, the deal is worth more than AUD $190 million.
The deal is dependent on the decommissioning of a coal plant that will be used to produce power for operating heavy machines for mining. The IoT Group has also partnered with Hunter Energy, which is to work on reviving the decommissioned power plant. The mining center will be established on two hectares. The company hopes to draw energy from the plant at wholesale prices.
Under the terms of the agreement, Royalty Blockchain is to install Bitfurry mining hardware provided by the IoT group. This will be at the Blockchain Applications Complex facility, in Hunter Valley. Royalty Blockchain is also to build and supply the infrastructure and servers need for the cryptocurrency mining operation.
The facility is to draw in 20 megawatts of power over a five year period pegged at 11 cents a kilowatt, compared to standard rates of $.30 to $.45 per kilowatt. The power purchase agreement could generate AUD $20 million a year.
“The IoT Group will only be using a small portion of the power generated by Hunter Energy and IoT is also currently negotiating with renewable Power suppliers to offer a similar arrangement around Australia to accommodate all of IoT’s crypto clients. We have an enormous amount of Blockchain – Crypto mining interest,” IoT SEO Sean Neylon said.
The group says it has already received substantial interest from other crypto groups planning to venture into the mining business. The company plans to engage these groups as it eyes new avenues for revenues and profits.
The company is eliciting strong interest in part because of the power from Hunter Energy. It will be relatively cheap for mining operations before getting its way into the grid. In the meantime, the company will only be using a small amount of power produced. The remaining could interest other crypto players at a given price.