Bladetec, a supplier of high-powered IT equipment in the UK, is reportedly planning to build a £10 million ($13.9 million) bitcoin mining farm across three locations in England.
According to major UK daily The Telegraph, Bladetec is looking to raise £10 million from investors to build and operate a 3-500 square foot bitcoin farming facility operating as ‘The Third Bladetec Bitcoin Mining Company Ltd’ (TBBMC). The facility is reportedly being built across three locations in London, Suffolk and Surrey with Bladetec claiming the company is the first bitcoin mine in Europe to be funded by investment in a Financial Conduct Authority (FCA) regulated firm via capital raising partner Envestry.
Details on its website reveal that Bladetec is seeking a minimum investment of £5,000 per investor with shares sold at £1.00/share par value with funds used to purchase mining hardware and pay for electricity, site and admin costs. The company will be 100% shareholder owned, Bladetec added.
The company contends it has secured deals with wind farm for cheaper electricity, which will constitute the majority of the costs. The electricity will be used to power some 1000 ASIC mining rigs, to be purchased by TBBMC, running at 43 terahashes per second, according to information from Envestry.
“The combined processing power of this mine will be on the Peta-hash scale, which will make it a significant global mine,” says a summary of the investor pitch. “Proceeds from the mine will be securely stored in off-line wallets and safety-deposit boxes.”
“We are entirely focused on maximising shareholder returns and so, understanding the relatively volatile nature of Bitcoins, we have allowed for four different growth scenarios with up to 45% capital growth per annum,” explains Declan Kennedy, CFO and one of three admins who will manage TBBMC.
The company intends to exit bitcoin mining within 2-3 years with shareholders’ returns earned from the sale of mined bitcoins and the mining equipment in pound sterling. This is touted as a ‘proven exit strategy’ to be enforced in aa scenario wherein the value of bitcoin hasn’t increased above a forecasted value or if the company doesn’t obtain permission from its investors to continue mining – if the price of bitcoin increases above forecasts.
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