The DUG Technology group (ASX: DUG) has signed a binding heads of agreement (HoA) with HODL Ranch Mining LLC for DUG McCloud.
The HoA includes supply of high-performance computing (HPC) infrastructure which will be hosted in DUG’s Houston data centre at Skybox and utilise the DUG Cool immersion technology.
The HoA consists of two orders totalling 192 tanks with associated components (electrical and dielectric fluid), installation and associated professional services.
The Agreement is for an initial term of 36 months with an expected revenue of US$8.7 million over that period. A progressive installation is targeted for completion within three months.
Managing Director, Dr Matthew Lamont, said DUG Cool is the company’s award-winning and patented immersion cooling system. It is an advanced, flexible, and modular dielectric-fluid cooling solution which reduces power consumption by up to 51%, as well as increasing the life and efficiency of computer hardware.
We are very pleased with this agreement. It is a testament to our green, energy-efficient HPC technology and ability to deliver tailored solutions,” Dr Lamont said.
The company also revealed it has successfully refinanced ts US$17,805,000 Term Debt Facility with Commonwealth Bank of Australia. The expiry date of the Facility has been extended from January 7, 2022 to July 1, 2022. During the 2022 financial year DUG is required to make principal debt repayments of US$6,250,000. This is at a similar level to what was repaid in FY21.