British IT equipment manufacturer plans to build a Bitcoin mine in the UK

British IT equipment supplier Bladetec reportedly plans to build Bitcoin mining farms in three locations in the UK and plans to raise 10 million pounds or approximately $13.9 million.

According to British media The Telegraph, the project, called Bladetec Bitcoin Mining Co., Ltd. (TBBMC), aims to raise £10 million or approximately $13.9 million from investors to build and operate a 3-500 square foot Bitcoin farming facility. The facility is reportedly being built in three locations, namely London, Suffolk, and Surrey. Bladetec claims that by working with financing platform Evenstry, TBBMC will become the first Bitcoin mining farm in Europe with investor protection under the FCA.

Details on the company's website show that Bladetec's shares are priced at £1 per share and the minimum investment is £5,000 per investor. The funds raised will be used to purchase mining hardware and pay for electricity, site and management costs. Bladetec added that the company will be 100% owned by shareholders.

The company claims that it has reached an agreement with wind farms to obtain cheaper electricity, which will make up the majority of the costs. According to Envestry, this electricity will be used to power approximately 1,000 ASIC mining rigs, which will run at 43 MHz per second.

A spokesperson for the project claimed that "the combined computing power of the mine will make it an important mine in the world. The proceeds from mining will be securely stored in offline wallets and safes."

TBBMC Chief Financial Officer Declan Kennedy said, "We are committed to maximizing shareholder value, so given the relatively volatile nature of Bitcoin, we have proposed four different investment return scenarios that can achieve capital growth of up to 45% per year."

The company intends to exit the Bitcoin mining industry within 2-3 years, and the proceeds to shareholders will come from the sale of Bitcoin and mining equipment. This is considered a "proven exit strategy." If the value of Bitcoin does not rise above the expected value in the future, the company will not obtain permission from investors to continue mining.