This week the publicly traded firm Mogo Finance Technology Inc. (TSX: MOGO) announced the creation of a new subsidiary called Mogo Blockchain. The fintech company’s new endeavor is a partnership with the firm DMG Blockchain Solutions in order to launch a bitcoin mining facility in British Columbia.
Mogo Finance Is Building a B.C. Based Bitcoin Mine With DMG Blockchain Solutions
The fintech firm Mogo Finance Technology believes that cryptocurrencies are the future and the company’s latest venture will enter the world of bitcoin mining. Mogo Blockchain has created an alliance with the Vancouver-based company DMG, as the two firms have plans on opening a new mining operation in British Columbia. The facility will focus on bitcoin mining, hosting (mining as a service (MaaS), and blockchain platform development. Mogo says the firm will begin by leasing 1,000 bitcoin mining rigs and expects the facility to be fully operational by the end of this quarter.
“We’re excited to work with DMG given their extensive mining experience and attractive mining as a service model,” explains Greg Feller, CEO of Mogo Blockchain. “We believe that gaining exposure to mining cryptocurrency such as bitcoin is an important part of building our competency around blockchain.”
In addition, this mining venture will enable us to generate our own supply of ‘freshly minted’ bitcoin for our Mogo members once we introduce ‘Mogo Crypto’ later this quarter.
The Launch of the Mine and ‘Mogo Crypto’ Aims to Make Cryptocurrencies More Accessible to Canadian Citizens
Mining rigs will be maintained by DMG using the firm’s MaaS model. Mogo explains the new facility is just the beginning as the Mogo Crypto launch is expected to allow Canadians to easily buy and sell bitcoin through their Mogo account. DMG explains that its alliance with a well-established fintech company such as Mogo will create more cryptocurrency accessibility for Canadian citizens.
“Mogo is well positioned to make cryptocurrencies accessible to more Canadians,” Dan Reitzik, CEO of DMG emphasizes. Additionally, Reitzik spoke with news.Bitcoin.com about how the firm initiated its mining operations located in Canada.
“In early 2016, DMG decided to explore industrial scale bitcoin mining in Canada — As industrial-scale crypto-mining is a very complicated endeavor, DMG brought on Sheldon Bennett as a partner to provide his expertise,” Reitzik explains. “Previously, Sheldon had been in charge of developing industrial-scale mining for Bitfury, the world’s second-largest bitcoin mining company.”
Reitzik adds, “As a diversified blockchain and crypto-mining company, DMG then added a blockchain software team, currently working on various supply chain platforms for clients including Element Fleet Management, and a data analytics and forensics division, now working with accounting clients, helping them understand the financial aspects of this new crypto-environment.”
DMG has two bitcoin mining facilities currently operating in Canada, and a new facility expected to be operational in the first half of 2018. As far as I’m aware, this will be the largest crypto-mining facility in Canada.
Canada has become a favorable region for cryptocurrency entrepreneurs, businesses, and mining operations lately. Recently there’s been reports of Chinese miners looking to set up shop in Canada. Meanwhile, the government has been more friendly towards the cryptocurrency economy, and the firm Evolve Funds is hoping to get approved for a bitcoin-based ETF in the country. The latest venture from Mogo and DMG shows even more companies are flocking to this area in great number.
What do you think about Mogo and DMG building a bitcoin mining facility in British Columbia? Let us know in the comments below.
Images via Shutterstock, Mogo, and DMG.
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Author: Jamie Redman