IoT Blockchain, Mining Distributor RBG Sign $190M AUD Crypto Mining Deal

Announcements, News | May 8, 2018 By:

Australian startup IoT Blockchain has signed a “conditional binding term sheet” with Australian mining hardware distributor Royalti Blockchain Group (RBG) to build a mining complex in a decommissioned power station. The deal is reported to be worth around $190 million AUD (142M USD).

IoT Blockchain will develop a “Blockchain Applications Complex (BAC)” in Hunter Valley that would be powered by the disused Redbank power station, which was originally built in 2001 and stopped operating in 2014. The company has already partnered with Australia’s Hunter Energy in an effort to have Hunter leverage its position to acquire the Redbank power station.

According to the terms of the agreement, Royalti, BitFury’s authorized integrator and approved partner, would install Bitfury mining equipment at the plant provided by the IoT Group, alongside 20 megawatts of power at $0.08 per kilowatt hour. The agreement will be for an initial five years with an option for another five years.

“The 10-year contract is to supply 20 megawatts of power to Royalti Blockchain Group to install Bitfury’s Blockchain hardware solutions to operate within the proposed IoT Blockchain Applications Complex behind the Grid at the Hunter Energy Power Station in the Hunter Valley,” said Sean Neylon, founder and executive director of the IoT Group. “It will generate almost $20,000,000 per year for 10 years. In addition there has been incredible interest from other cryptocurrency groups which will be signed up over the coming weeks which will deliver substantial revenues and profits to the IOT Group.”

For the deal to push through, it is imperative that Hunter Energy acquires and recommissions the Redbank power station. IoT Blockchain said: “If Hunter does not complete its acquisition…or if competition does not occur under the terms sheet…the transaction…will not proceed.”