announced Wednesday that it has made an investment of $2.5 million (CAD) into privately-held BC company
This is Khan’s first investment into the blockchain sector and if all goes well, Khan’s interim CEO Marc Henderson stated that further investments into other sectors with attractive growth profiles are possible.
“We looked at many high impact opportunities to relaunch Khan as an active company and within the sectors that currently have the best combination of capital markets dynamism and future long-term growth prospects, blockchain clearly stands out.”
This investment is a part of Arctic Blockchain’s $10 million acquisition of Hydro66 that was announced on March 2nd, 2018. The combination of these two businesses creates a datacentre business that is well-funded and growth-oriented. It will supplement Hydro66’s growth plans and is intended to be the final private financing round prior to a Canadian public listing planned for Q2 2018.
Richard Patricio, Arctic Blockchain CEO, added that this was a well-researched investment, having assessed several players in the field before choosing Hydro66.
"Hydro66 stands apart from the field in this regard and the asset base we have acquired and are aiding to build will have real value, in the future for cryptocurrency, the blockchain and high-performance computing.”
Based in Boden, Northern Sweden, Hydro66 has been operating since 2014, offering enterprise co-location services where equipment, space, and bandwidth are available for rental to retail customers. This space provides power and cooling for the servers, storage, and networking equipment of other firms—and connect those firms to a host of telecommunications and network service providers.
Image via Hydro66.se.
Hydro66 also specializes in mining as a service (MAAS) of various cryptocurrencies on its own account and for its client base. Its flagship facility has an installed operating capacity of 4MW with an added 36MW capacity under construction and expected to be complete by Q1 2019.
This facility is 100% environmentally friendly, using hydropower and a cooling system designed to allow for free air cooling 365 days a year. Hydro66 has been recognized with accolades in this field, the Company just won the 2017 Sustainability Award at the Datacentre Dynamics Global Awards Ceremony for its efforts to keep energy computation low. Upon receiving the award, Andy Long, Hydro66’s Director of Strategic Development, acknowledged his industry’s reputation for excessive power consumption.
"Data centres are increasingly under the spotlight as being energy-intensive, and with that scrutiny comes the need for innovation and transparency.”
For investors taking a closer look at Hydro66, it has an additional 50MW capacity reserved for future expansion. Sweden, like Canada, is an ideal place to set-up a cryptocurrency mining operation, thanks to relatively cheap power and desirable temperatures to keep mining rigs cool through the year.
David Rowe, Hydro66 Chairman details what this relationship means for investors.
"The additional capital not only gives us further confidence in our plans but allows us to be opportunistic in our thinking. The path towards a public listing will provide access to larger pools of capital as we expand our ambitions and footprint."
Under the terms of the deal, Khan has the right to keep its proportional participation in the future equity raises.
Blockchain and cryptocurrencies are on the rise and growth is expected to accelerate exponentially in the next few years. the combined funding from Khan and Arctic Blockchain toward Hydro66’s business expansion will help ensure it is a premier datacentre that is operating ahead of the curve when newcomers to this space will be playing catch-up.