NBTC Limited, a wholly-owned subsidiary of Chinese internet company The9 Limited (Nasdaq: NCTY), said it has leased 32MW of cryptocurrency mining infrastructure from operator Compute North.
The power will be used to run 10,000 Bitmain S19j miners that NBTC will deploy in the United States, beginning in the second quarter of 2022.
NBTC has an additional 14,000 Bitmain S19j miners that are expected to be deployed with hosting partners in other countries such as Canada, starting from December this year.
Zhifang Cai, CEO at NBTC, said: “We are pleased to be moving forward with Compute North as our preferred, long-term hosting provider in the United States. Upon the completion of the deployment of these 24,000 Bitmain S19j miners, we expect to be producing an additional hash rate of 2,160PH/S.
“This agreement helps further our goals of sourcing hosting solutions that offer efficient and environmentally friendly power resources in facilities around the world for NBTC to deploy our cryptocurrency mining machines.”
Dave Perrill, CEO at Compute North, added: “We’re proud that Compute North’s focus on sustainable mining solutions factored into NBTC’s decision to partner with us for its upcoming US deployment.
“Because of the unique and important relationship between our data centres and power providers, the process of mining has demonstrated the ability to provide added benefit to the energy ecosystem across the US, in addition to supporting the ongoing health of a truly transformative technology and digital asset class.”
The contract with NBTC comes as a follow up to a series of deals signed by Compute North in recent months.
This includes, for example, the 100MW colocation capacity allotted to crypto miner group Atlas Technology at the end of October.
Founded in November 2017, Compute North operates today three data centre campus in Texas, South Dakota and Nebraska. The company is in the process of also constructing a facility in Minnesota.
Last February, the business raised US$25 million in debt financing and equity to expand capacity and enable further growth.
The debt capital was invested in the form of a senior secured loan from Post Road Group. Post Road Group is a privately held, US-based, investment group that focuses on private credit and private equity investments in telecommunications, media, technology, business services, and real estate.
Compute North simultaneously closed a strategic equity round including industry leaders, family offices, and strategic partners.
According to Crunchbase, Compute North has raised a further $5.1 million in April 2021 and completed a seed round in September 2020 that secured $4.7 million.