One of Australia’s publicly listed blockchain companies just inked a major deal for one of its most ambitious projects. IoT Group, a blockchain firm listed on Australian Securities Exchange (ASX), has signed a deal with an Australian reseller of Bitfury’s Bitcoin mining hardware to start a new Bitcoin mining facility in the country. It will be a huge mining facility, and if everything goes right it can propel IoT Group to new heights of success. Now all that IoT Group needs is to get a decommissioned coal plant up and running to generate the power required for their project.
The new deal was announced recently through a disclosure by the company on ASX website yesterday. The company said that its blockchain arm IoT blockchain has signed a ‘conditional binding terms sheet’ with Royalty Blockchain Group, a major reseller of Bitfury’s mining hardware in the country. The deal has been signed for development of a giant ‘Blockchain Applications Complex’ in Hunter Valley region of Sydney, Australia.
The proposed complex will be spread in area of two hectares, and it will be powered by a decommissioned coal plant known as Rebank Power Station. IoT Group has hired Hunter Energy to set up this coal plant in action according to its requirements. Once Hunter Energy has set up the Redbank power plant according to company’s requirements the plant will provide electricity to IoT group at a rate of 11 cents per kWh. That’s pretty close to wholesale prices of energy, because in retail the prices range from 30 cents to 45 cents per kWh.
According to IoT Group’s media release this is a AUD 190 million deal, which makes it one of the largest blockchain deals ever in the history of Australian blockchain industry. Once everything is up and running and the proposed mining center goes into action, IoT Group suggests that the project will generate almost AUD 20 million for 10 years, thus recovering the current investment completely.
However, at the same time company also explained that the term sheet is conditional and whether this deal is executed successfully or not will depend on the work of Hunter Energy. It said in its disclosure:
“Investors should note that the Terms sheet is subject to and conditional upon the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition of all right, title and interest in the Redbank Power Station to the absolute satisfaction of IoT…If Hunter does not complete its acquisition…or if competition does not occur under the terms sheet…the transaction…will not proceed.”
So as of now the fate of this ambitious project depends on the work of Hunter Energy. Redbank Power Plant was shut down in 2014 and it’s defunct as of now. It will be the responsibility of Hunter Energy to get it up and running in time for IoT’s mining operations.