Bitmain, DMG Blockchain Cancel Texas Mining Agreement Due To ‘Cost and Operational Efficiencies'

One of the world’s biggest Bitcoin mining firms, Bitmain, announced on Thursday the end of their agreement with Canadian based DMG Blockchain Solutions, which took up management of Bitmain’s mining operations in Texas in October 2019.

According to reports from crypto media outlet The Block, a Chinese mining giant, Bitmain, has parted ways with DMG Blockchain solutions, regarding the management of the Texas-based mining firm, which was touted to be expected to produce over 300 MWs at optimal capacity.

In October 2019, during the launch of its Rockdale, Texas mining facility, Bitmain announced a management partnership with DMG Block solutions that would see the DMG managing the operations of the Texas-based farm. The partnership, however, was mutually terminated following conflicts on what was termed as inefficiencies in “cost and operations”.

DMG blockchain solutions based in Vancouver had already installed up to 15000 next-gen miners in the facility before termination of the partnership occurred and would have achieved an estimated mining capacity of around 300 MW.

Bitmain and DMG Blockchain Solutions to collaborate on other projects

The fallout was caused by what DMG Blockchain solutions claimed to be a failure to materialize cost and operational efficiencies. They, however, stated that this would not be the last venture they partner in together. The two still continue partnerships for other projects they were running together notably the DMG Christina lake project.

While Bitmain hasn’t announced a new operator for their 33000 acre Texas mining farm and it is unknown whether the farm is still operational or when it is set to resume operations.

Northern Bitcoin, also notably a big player in the Bitcoin mining industry has partnered with Japanese giants SBI and GMO. The partnership will see the biggest mining operation that will also be based in Rockdale which is famous for the many crypto miners it hosts. This is attributed to the fact that Texas has vast resources to produce cheap electricity for the industries. Northern Bitcoin stated that the farm would produce at an initial capacity of 300 MW but is set to hit the Gigawatt capacity by end of 2020.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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