Hut 8 Mining Corp. has been leasing land in Medicine Hat for six years. File Photo/CHAT News

By Eli J. Ridder

City of Medicine Hat sells land to Hut 8 Mining Corp. for $600K

Oct 11, 2024 | 4:11 PM

Medicine Hat city council has approved the sale of two plots of land to cryptocurrency firm Hut 8 Mining Corp. for a total of $600,000.

Hut 8 has been leasing the land from the city since it was launched in 2018, starting with one 10.96-acre site.

At the time, typical off‐site levies were deferred with the development permit and subdivision of the parcel, on the basis the land wasn’t connected to levy-appropriate infrastructure, staff wrote in a report to council on Monday.

In September 2018, the city entered into a further agreement with Hut 8 for the option to lease the adjacent 10.96‐acre site.

Hut 8 in March 2019 requested a reduction of the lease rate based on actual use of theland following the commencement of their operations.

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A new appraisal was completed and indicated a lower market value that the city granted.

The city’s land and real estate department received a letter of interest on April 16 from Hut 8 requesting to purchase the two parcels of land at $300,000 per site.

The department was satisfied Hut 8’s proposed price was fair value after circulating the potential sale of the property to the technical coordinating committee and performing a comparative market analysis.

The staff report added Hut 8’s land buy shows commitment from the company to continue operations in Medicine Hat.

Coun. Shila Sharps said she’s happy to see a company that brings jobs to Medicine Hat expand.

“They are well educated. They are skilled, and they’re doing training out there. So, we have a good workforce out there. So I’m thrilled that they’ve chosen to expand here,” she told CHAT News after Monday’s council meeting.

“They’re taking up more land, which means more tax base. So yeah, this is awesome.”

Hut 8 did not reply to repeated requests for comment made by CHAT News this week.