With each passing day, Canada is becoming a new global hub for crypto mining. The clampdown on crypto mining in China has already made Canada’s cool climate and cheap hydro-electricity an easy target for bitcoin miners. Now, BitFury with Hut8 is going to get listed on TSX and tap its market that might also bring the regulations and tax propositions sooner.
BitFury’s Hut8 to be listed on TSX this month
A part of the Bitfury Group, Hut 8 Mining Corporation, that is based in Vancouver is all set to be listed on the Toronto Stock Exchange (TSX), Canada this month. Once Hut 8 makes its debut, the 49 percent of the Hut 8 will be owned by the parent group while the rest of the stocks will go in the hands of insiders and private placement investors.
One of the biggest bitcoin mining infrastructure providers, BitFury is primarily involved in the design and build of the semiconductors for BitFury’s mining data centres where the bitcoin transactions are processed.
The plan is that Hut 8 will be acquiring about 60 megawatts of the mining power of BitFury in Canada, by the mid of this year. As per the investors of this project, they already have an exclusive agreement with the parent company to build new farms in North America. It has also been reported that the hedge fund mogul, Mike Novogratz is also financing the deal.
According to the CEO of Hut 8, Sean Clark:
“This is about access to capital and scale. We found a perfect vehicle to capitalize incredibly quickly. Bitfury now is going to rebalance the global network. If the capital markets react as we expect them to, there’s the opportunity to vend in other parts of Bitfury. Potentially all of Bitfury – piece by piece.”
This will be also a great opportunity for the investors to buy in the every growing computer chips market.
Right now, Bitmain Technologies Ltd. is dominating the industry of chips manufacturing for the bitcoin mining. With the Chinese government’s crackdown on the crypto industry, Bitmain’s role has been threatened as a dominating party in the market. This certainly gives other companies like BitFury a chance to work it in their favour.
Reportedly, BitFury has the hashing power of 172 megawatts that is mined over a million coins. Its estimated revenue is $350 million. Furthermore, the market share has been said to be about 10 to 12 percent as per the Chief Executive Officer, Valery Vavilov.
Canadian Regulations on Crypto Mining might come soon
Canada has certainly become a hot spot for the mining of cryptocurrency. Recently, the cold weather and cheap hydroelectric power has been attracting the mining companies as a potential area to set up their sites. Now, the TSX is allowing firms to raise public funds easily that gives companies like BitFury an edge over their competitors like Bitmain.
This has been explained by Bill Tai, a venture capital investor:
“This industry’s dependency on highly efficient silicon can determine who wins and loses. Part of this equation is access to capital. It’s very much like oil rigs, the more you can put up, the more output you’re going to get.”
With the rise of the mining companies in Canada, it seems like the suggestions made by the country’s taxman to consider levy taxes on this growing sector might come sooner than expected. It would be interesting to see what kind of steps Canada’s regulatory bodies will take.
What are views on Canada becoming a new hub for crypto mining and the potential of regulations? Let us know below!
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.