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An Australian blockchain group against a $ 190 million cryptographic mining transaction

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IoT Group, an ASX listed company in Sydney, has signed an agreement with the Australian reseller of Bitcury. equipment to start a mining operation if it can put into operation a disused coal plant.

In an announcement and disclosure on the Australian Securities Exchange (ASX) on Monday, the IoT group revealed that its subsidiary IoT blockchain had signed a "binding conditional condition" with Royalti Blockchain Group, the Australian giant's reseller Bitcoin Bitfury mining equipment. .

The proposed agreement provides that the IoT Group is considering the development of a "Blockchain Applications Complex" (IBC) at Hunter Valley, powered by the Redbank Generating Station – a disused coal-fired power plant . As previously indicated, the IoT Group has partnered with Hunter Energy as part of its efforts to acquire the power plant needed to build the proposed two-hectare mining center. If successful, the IoT group claims that it will be able to draw energy at wholesale prices from the plant.

The deal is estimated at more than 190 million Australian dollars according to a press release from the IoT group, although the disclosure compliance rules do not contain any details about the figure in the ad official ASX.

Under the terms of the agreement, Royalti would install its Bitfury mining equipment at the facility provided by the IoT group, alongside 20 megawatts of electricity for at least five years at 11 cents per KWh. In comparison, retail prices cost between 30c and 45c / KWh.

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However, it is imperative that Hunter Energy acquires and repeats the old Redbank Power Station to power its cryptocurrency extraction operation. The coal plant was closed in 2014.

In his ASX announcement, IoT Blockchain stated:

Investors should note that the Conditions sheet is subject to and subject to the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition any right, title or interest in the Redbank Power Station to the absolute satisfaction of IoT … If Hunter does not complete its acquisition … or if the competition does not occur under the terms sheet … the transaction. .. will not happen.

The terms of a legally binding power purchase agreement will be applied no later than October 1, 2018, the announcement added.

Image from Shutterstock to photo

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