While casual crypto mining can be effectively considered dead, large-scale mining is very much alive. It’s pretty much the only way you can mine nowadays.ASIC chips have a large role to play in that development.
Of course large-scale mining has a large cost and requires a lots of space. Wuhan General Group, a Chinese holding company, has recently started negotiating for a large US Defense Facility. According to the press release from yesterday, the Chinese company seeks to transform the facility into a huge mining farm.
Acquiring large spaces is nothing new for large companies. If you possess the resources to sustain large-scale mining, it’s still very profitable. According to the press release, if the negotiations go well, the company will start receiving rigs in late October. More will be expected to arrive in the following months. One of the main reasons for this deal is that Wuhan General Group will benefit from the low electricity rates in the United States. High-speed Internet combined with a cool climate, is extremely important for large-scale mining operations.
Large-scale mining has large requirements
The facility can currently accommodate around 1300 machines. The 55 000 square foot data center has more than 3MW power and will reportedly be upgraded to 30MW next year. The upgrade will allow for 12 000 new mining machines to be added. Based on the company’s estimations, the starting 1300 mining machines will provide around $3.5 million/month.
The CEO of the company, Ramy Kamaneh stated:
“We planned to build the operation months ago, but the bearish crypto market forced us to take back and reassess our strategy. The decision to wait turned out great, since now many crypto mining machines are no longer profitable. Our decisions were done entirely for the well-being of the Company and its shareholders. We strongly believe that the market is becoming bullish again.”
This isn’t the first deal of this magnitude that has happened in 2018. In May, an Australian startup IoT Blockchain and mining hardware distributor Royalti Blockchain Group shared their joint plan for a huge mining complex in a disused power station. Additionally, a nearby power station, will provide power at reduced rates to power the project.
It’s very well known that some US states have low energy costs. This makes them an attractive destination for many mining companies. The state of New York took a very innovative approach. The new electricity price schemes will allow miners to negotiate contracts. Without a doubt this practice will be used even more if more states see profit in large-scale mining.
You can also check out:
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- Bitcoin Dip: What Caused it and What Will Change it Back - Jul 17, 2019
- VeriBlock and the Accusations About False Spam Transactions - Jul 16, 2019
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Tags:electricity priceselectricity rateslarge-scalelow energy costsminingnegotiate contractsState of New YorkUnited StatesUS statesWuhan General Group