3G Venture II Starts Crypto Mining Farm In Old Intel Building For $13 Million
California Venture II 3G paid $13 million for a part of the territory of the former factory of Intel in Colorado Springs, where the company intends to build a mining farm for Bitcoin mining to turn into a new operation on the development of bitcoins. The plant was made to manufacture semiconductors for Intel and was shut down in 2009.
In three buildings with an area of 85,000 square feet will be set mining devices for production to be maintained by the company itself. The fourth building, with an area of 640 000 square feet, will be designed for industrial tenants.
The location of the plant makes it a tempting opportunity for 3G Venture to purchase it, as it is situated in Colorado Springs. The town boasts a lower electricity rate in comparison with the national average, with costs being 21% cheaper. The plant also has a very well-established electricity network built for Intel’s needs.
Much of the town’s economy is based in the high-tech sector, with companies like Verizon and Hewlett-Packard setting up offices. In 2000, Intel opened a 1.4 million square foot semiconductor plant in the area that boasted an extensive electricity network among other features. A several year-long decline in the industry caused Intel to close down the plant in 2009 and there it has remained abandoned, until now.
The operation utilizes ASICs for mining, which makes cheap electricity costs and existing infrastructure incentives for the company to move into Colorado Springs. ASICs are Application Specific Integrated Circuits and can provide hashpower many times greater than consumer grade equipment like graphics cards.
Bitcoin’s current bear trend doesn’t seem to discourage miners. Since January, the price has fallen well over 60 percent, yet the hash rate has nearly tripled from 13 EH/s to just around 37 EH/s. The hash rate is a good indicator of the overall security of the network; the higher the hash rate, the more difficult it is for someone to launch an attack. How the market responds to a more secure network is yet to be seen.