Mining Power Group’s majority-owned subsidiary, Northway Mining which offers highly specialized data center hosting services for cryptomining and is located in Athens, NY, has signed a 2-year, $270,000 per month hosting contract with Proof Computing, a U.S.-based firm which will yield approximately $6,480,000 million in revenues to Northway Mining over the two years.
The data center hosting contract encompasses the hosting of about 3,150 miners, including up to 25,000 GPU’s, projected to consume about 5 MW hours of electricity per month. Under the terms of the contract, Proof Computing is paying a $540,000, or two-month, advance deposit for the hosting services which will cover installation, set up and equipment testing services by Northway Mining. The contract runs from approximately August 1, 2018, to July 31, 2020, and is renewable.
Northway Mining is a cryptocurrency mining data center hosting facility that provides hosting, electricity, cooling, maintenance, insurance, downtime coverage, OS installation (GPU) assistance, setup and security, and more.
“As I say in my bio on our website, I firmly believe that cryptocurrency is the future of transactions that will revolutionize the financial industry,” said Michael Miranda, President of Northway Mining. “This 2-year client contract (the first of many more to come) hints at the pace at which we expect demand for our facilities and services will grow… beginning today. We are leading the way in the marketplace by creating fully-customized data center crypto mining solutions.”
Tobacco Products and Cryptomining
Mining Power Group had just recently acquired a majority interest in Northway Mining, which has current revenues. In addition, it acquired real estate assets of substantial value including 30 acres of flat surrounding land that will be used for future expansion of Northway’s data center facilities. Northway presently has over 5,000 square feet of secure crypto mining space.
Mining Power Group, Inc. was original formed as Rich Cigars to distribute, brand and market tobacco products. Following a change of control in November 2017, it changed its name and shifted its focus to become a holding company for new subsidiary operations serving the cryptomining industry.
“One of the key reasons we did this acquisition, was that we saw that we were carving out a special niche in this market, where we were not actually competing with cryptomining companies, but we could provide top of the line and state of the art facilities and services that every company in the field would want and utilize,” said Dror Svorai, President and CEO, of Mining Power Group. “We are not competing with them but are servicing them. That way, the whole market could become our clients… not our competition.”