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Bitmain, a leading Bitcoin mining hardware manufacturer, is aiming to boost its mining capacity in North America with its latest agreement. The company has signed an agreement with data centre and power partners Bit5ive and ISW holdings to store 56,000 units of Bitmain mining equipment.
According to the official statement, the mining fleet will be completely operational by October 2022, with the first 20 MW of capacity projected to be operational by October 2021.
It further explained,
“The deal will involve 56,000 Bitmain mining rigs pairing with 200 megawatts (‘MW’) of power at the Company’s ‘POD- CITY’ location in Georgia. The Company expects to have the first 20 MW of power paired with rigs and running full-out by October 2021. The schedule calls for having all 56k miners hooked up to all 200 MW of power and running full-out by October 2022.”
ISW Holdings, the deal’s hosting partner, stated that the overall rollout cost, including facility activation, will be $62 million, with $6 million already paid.
Bitmain supplies more than 65 percent of the world’s mining rigs and had a farm in China until the country began shutting down mining operations. Miners began relocating their rigs out of Inner Mongolia by March 2021, on rumours that the country was shutting down all crypto mining operations, which it subsequently did. Many rigs were relocated to Canada and Kazakhstan, but some were also sent to Texas, where deregulated power markets provide ultra-cheap power.
Bitmain was now joining the booming mining market in North America, as institutions were also showing an increasing level of interest. As per reports, there was a major shift witnessed, with the hardware manufacturers joining hands with institutionalization.According to Ethan Vera, COO of Luxor Technologies, miners were moving to the public market to have access to healthy financing markets to drive their expansion.
The final step in this institutionalisation process would be public listing. We may have to wait and see if Bitmain goes through this phase of “institutionalisation” now that it has entered the competitive sector and is attempting to expand its reach.