Bitmain Should Know Everything Is Bigger In Texas, As A New 1 Gigawatt BTC Mine Breaks Ground

Mining is used throughout the cryptocurrency industry for the purpose of validating transactions, and miners earn rewards as they perform this work. However, it required a substantial amount of computing power, and Bitmain aimed to get a piece of this action with a massive new mine. Unfortunately, Northern Bitcoin’s capacity could surpass them.

  • Both Bitmain and competitor Northern Bitcoin rent their real estate from the same owner.
  • The new Bitmain mine could reach 300 megawatts, while Northern Bitcoin projects 1 gigawatt for their own mine.

Competition is ever-present in the cryptocurrency industry, and Bitmain clearly wants to stay ahead. The platform recently launched a bitcoin mine in Texas, located at a former Alcoa plant, but it, unfortunately, isn’t getting an award for the “world’s largest” anytime soon.

Another project recently launched this month, positioning itself ahead of Bitmain’s mine, aiming to start at 300 megawatts, pushing to a single gigawatt by the end of 2020. Bitmain’s mine, on the other hand, is only projected to reach 300 megawatts at its largest phase of development.

The data center developer, Whinstone US, already owns a mine for Bitcoin, located in Louisiana, and it has been building additional locations in the Netherlands and Sweden. Whinstone US has also collaborated with GMO Internet, a Japanese spin on the GoDaddy website, to put together the Rockdale project.

In mid-November, just after the ground-breaking, the Whinstone US company was acquired by Northern Bitcoin in an agreement, the latter of which is in charge of a Bitcoin mine in Norway. This mine runs on renewable resources. The deal states that a total of 3,720,750 new shares will be issued by Northern Bitcoin to the shareholders at Whinstone US, according to comments by the head of communications at Northern Bitcoin. Just after, on Wednesday this week, the value of the Northern Bitcoin shares leaped by 42%, rising to €23.60, which means that the company is now worth €180 million.

The construction and furnishing of the data center will end up costing $150 million, based on the projection by Whinstone. Throughout 2020, the mine will end up reaching its full capacity, reaching the full 1 gigawatt by the fourth quarter of the year.

Interestingly, the two mining projects host their facilities in real estate that is owned by Alcoa, which purchased a 33,000-acre space in the 1950s. Now, the area is more commonly known as Sandow Lakes Ranch, which has become an industrial hub.

Northern Bitcoin has already signed on two clients as their first entities involved, declining to name exactly who the clients are. Still, the company stated that these first patrons “will use a significant portion of the capacity for Bitcoin mining.”

Aroosh Thillainathan, the co-founder of Whinstone US, released a joint statement on the merger, adding that this new arrangement may “shape the future course of the global mining industry.” Mathis Schultz, the CEO of Northern Bitcoin AG, stated that the merger will push the firm to the top at a rapid pace.

Four months ago, a possible merger with Hydro66 Holdings Corp. fell through. The Swedish data center builder ultimately completed a round of fundraising for their own capital, leading them to back out.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,472FansLike
2,795FollowersFollow
4,197FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Is It Time for Chainlink (LINK) to Retract or Is There Still A Lot to Fuel This Fire

The 12th largest cryptocurrency by market cap has been hitting new all-time highs almost every day this week. The new peak is $6.53, and...

89% of Hodlers Are Worried About Their Crypto, But Only 23% Have A Plan For After Death: Report

An online research report by "after-life" investment experts firm, Cremation Institute, found out nearly 90% of cryptocurrency investors worry about losing their funds...

Real Risk: Circle-Coinbase Consortium Blacklists Ethereum Address Holding $100k Worth of USDC

The CENTRE consortium formed by Circle and Coinbase has blacklisted an Ethereum address holding $100k worth of USDC stablecoin. The transaction on Etherscan shows that...

Brazilians Are Moving Towards Dollar-Pegged Stablecoins As Alternatives to the Ailing Economy

Brazil is moving to dollar-backed stablecoins as the country's economy continues to ail coupled with the looming uncertainty on its increasing COVID-19 cases. According...

Bitcoin Moves: Options Market Indicate Bullish Price Outlook

This week, bitcoin is making its way upwards, albeit at an extremely slow pace. Yesterday, we went to nearly $9,500 but are currently trading...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today