Turnkey data infrastructure, in-house technical expertise and low-cost electricity at
1.4 cents per kilowatt hour drive competitive advantage
Calgary, AB: Bird River Resources Inc. (CSE: BDR) (“Bird River”) and Divestco Inc. (TSXV: DVT) (“Divestco”) today announced a joint venture to create a high volume, cost-effective commercial cryptocurrency mining operation based in Calgary, Alberta using existing infrastructure.
This follows a previously announced joint cogeneration agreement under which the two companies have joined forces to produce low-cost electricity by converting natural gas to electricity. The cryptocurrency mining operation will benefit with an estimated cost of electricity at approximately 1.4 cents per kilowatt hour compared to the Canadian industry average cost of electricity at approximately 6 cents per kilowatt hour. “Electricity is one of the largest expenses in running a commercial cryptocurrency mining operation. Securing low-cost electricity through our joint cogeneration facility provides us with an impressive competitive advantage,” said Ty Pfeifer, Director of Bird River Resources. “Furthermore, we are able to utilize Divestco’s existing data centre infrastructure, providing an even further substantial cost advantage in bringing our venture to the forefront of Canada’s cryptocurrency mining industry. Building a similar data centre would cost in excess of $5 million.”
Under the agreement, Bird River will pay for 100% of the capital cost of acquiring mining rigs for cryptocurrency mining operations. Divestco will provide the infrastructure for the cryptocurrency mining activity including climate-controlled space, racking equipment for up to 3,000 mining rigs, and personnel with specific expertise in crypto mining. Divestco will operate the data centre and all the crypto data mining rigs. Revenue, net of operating expenses, will be split with 80% of revenue to Bird River Resources and 20% of revenue to Divestco until such time that the original capital cost has been fully recouped, and will thereafter be split 50/50 between the two companies.
“We are pleased that the substantial investment we’ve made in our state-of-the-art data
centre will be utilized for this joint venture, and that existing IT resources can easily be augmented with expertise to run the cryptocurrency mining operations,” said Stephen
Popadynetz, President and CEO of Divestco. “We see great promise in this joint enterprise becoming Canada’s leader in cryptocurrency mining with the infrastructure, expertise and
low cost electricity that set us above the rest.”
About Bird River Resources Inc.
Established in 1958, Bird River Resources (CSE: BDR) is a Canadian natural resources
company focused on three verticals within the energy sector – Oil & Gas, Cogeneration and Technology. The Oil & Gas vertical was recently expanded through the acquisition of High Point Oil and focuses on the acquisition, exploration and development of petroleum and natural gas in the Western Canadian Basin. The cogeneration vertical is a joint venture with Divestco Inc. focused on the conversion of natural gas to electricity at exceptionally low rates. The Technology vertical focuses on the application of technologies such as blockchain to identified opportunities within the energy and technology sectors, including the establishment of a leading, ultra low-cost cryptocurrency mining centre through a partnership with Divestco. For more information, visit birdriverresources.com and divestco.com.
About Divestco Inc.
Divestco is an exploration services company that provides a comprehensive and
integrated portfolio of data, software, and services to the oil and gas industry. Through
continued commitment to align and bundle products and services to generate value for
customers, Divestco is creating an unparalleled set of integrated solutions and unique
benefits for the marketplace. Divestco’s breadth of data, software and services offers
customers the ability to access and analyze the information required to make business
decisions and to optimize their success in the upstream oil and gas industry. Divestco is
headquartered in Calgary and trades on the TSX Venture Exchange under the symbol
“DVT”. Additional information on Divestco is available on its website at divestco.com and
on SEDAR at sedar.com.