A publicly traded mining company has finalized a hosting agreement with Merkle Standard LLC to utilize its mining equipment in Memphis, Tennessee. As part of this deal, 5,293 S19J Pro miners will be hosted at Merkle’s location, with installation set for February 2025 under a commitment of at least one year. Simultaneously, 2,500 S19J Pro miners are being installed at a facility in Baie Comeau, Quebec.
The miners, which were formerly in operation at the Helios facility, are currently being converted from immersion cooling systems to air-cooled setups. It is anticipated that this refurbishment process will be completed by the end of March, with equipment expected to be shipped to both sites throughout February. These deployments represent roughly one-third of the 23,000 miners that were previously operational at Helios. Discussions regarding the potential expansion of this hosting arrangement are ongoing.
With the implementation of these changes, the company’s hashrate is expected to gradually increase as the miners become operational during February. The organization is also actively looking for further hosting options for its remaining mining equipment.
In a recent operational update, the company reported mining 39 Bitcoin during December, maintaining a daily production rate of 1.3 Bitcoin, consistent with the previous month. Mining revenue for December reached $3.9 million, up from $3.4 million in November. The organization is evaluating various alternative site options for future operations.
In a leadership transition, the Chief Executive Officer will resign from his post and also leave his position on the board effective February 28, 2025. He assumed the role in late 2023, during a challenging period for both the cryptocurrency market and the mining sector.
Throughout his tenure, there were several notable financial improvements, including the early repayment of a significant loan and an enhancement of the overall balance sheet. However, challenges persisted, as evidenced by the company’s third-quarter report for 2024, which indicated a net loss of $6.3 million, reflecting continued market difficulties and compressed mining margins.
In December, the company managed to secure £4.2 million (approximately $5.3 million) through a share subscription, issuing around 76.9 million new ordinary shares at 5.5 pence each to an institutional investor. This capital raise is aimed at supporting vital projects, including the relocation or sale of mining equipment from the Helios facility in Texas and sustaining Bitcoin mining operations in Quebec. Furthermore, the organization is exploring the possibility of expanding into high-performance computing (HPC).
Overall, the miner’s recent developments, including the hosting agreement and financial maneuvers, indicate a strategic effort to adapt to the evolving landscape of the cryptocurrency mining industry while addressing current operational challenges and future growth opportunities in different sectors.