- Cryptocurrency miner, Skychain Technologies (TSXV:SCT) has signed a letter of intent to lease a plot of land in Manitoba
- The company plans to develop a new digital mining facility there, increasing its current hosting capacity by 400 per cent
- Skychain chose the plot because of its access to cheap hydropower and colder weather, which are beneficial to digital mining operations
- The company has issued a private placement valued at C$2 million, to help fund the lease and develop the facility
- Skychain Technologies (SCT) remains unmoved, with shares trading for $0.19 and a market cap of $2.27 million
Skychain Technologies (TSXV:SCT) is planning to lease a large parcel of land in Manitoba, for mining digital currencies.
The company has signed a letter of intent to lease the 0.65-hectare plot, with the option to purchase later. If completed, the site will increase Skychain’s hosting capacity by 400 per cent.
Skychain chose the plot because of its access to the Manitoba hydro-power facility, which could supply cheap, abundant power to the site.
Cheap power is integral to cryptocurrency mining, as large swarths of electricity are necessary to continually run the required mining software.
Common cryptocurrencies, like Bitcoin or Ether, have become less valuable over the past two years. As such, cheap power has become even more vital to sustaining a profitable digital mining company.
For comparison, the new site’s power 46 per cent cheaper than at the company’s British Columbia site, which operates similar mining operations.
Skychain also claims that the colder weather in Manitoba will allow processors to mine more efficiently.
The company signed the letter of intent with an Ontario-based limited company. The site already has a 12-megawatt agreement with the hydro-power facility.
In order to fund the project, Skychain has announced a C$2 million private placement. The company will issue 10 million units, each of which are comprised of one common share and half a warrant. The units are priced at 20 cents each.
The company will use the resulting proceeds to complete the lease and begin developing the site.
Skychain Technologies (SCT) remains unmoved, with shares trading for $0.19 and a market cap of $2.27 million.