Wu Jihan, co-founder of Bitmain, has announced plans that his company will expand its mining operations into the U.S. In early April this year, the firm said that it had been granted access to setup its cryptocurrency mining operations within the borders of the United States.
In an interview with Bloomberg, Jihan stated that the company has been hard at work expanding its network on a global scale, including the launch of additional facilities in the United States.
This year, miners who generated Bitcoin and Litecoin have both experienced a tremendous amount of growth in value over the last year alone, which is in alignment with the performance of the crypto market as a whole. Bitmain’s profit has also been on the rise with a turnover exceeding $2.3 billion.
To coincide with Bitmain’s expansion, the company also announced that it has developed a new ASIC Antminer that will be ready later this year. The new miner, the Antminer E3, is set to deliver a huge hashing power whilst offering a better return on investment. The miner is set to target the Ethereum mining community.
Why the United States for Bitmain?
The co-founder of Bitmain stated that the United States has one of the largest cryptocurrency markets today as it is the second largest after China. The company therefore considers it important for the company to expand its operations there.
Wu also stated in the interview that the US market is complex and different to China, and presents different challenges, like the higher costs of electricity and legal compliance. Despite these roadblocks, the company is confident that its involvement in the market will play a significant role in spurring competition in the United States market, while it also pursues its goals of lowering mining costs.
The two mining facilities under development are due for completion in later this year. Wu did not state an exact number of facilities that Bitmain will launch in the United States, although he did state that he has ambitious plans. The company will pour more than $100 million dollars into the venture.
The venture is set to increase the company’s revenue, as well as create more sustainable job opportunities for its employees and contractors.
Expansion into US a Strategic Decision
The co-founder believes that expanding its operations into the United States has a lot to offer the company in that the country is a high growth market. He also remarked that the company is planning to use artificial intelligence (AI) to power its mining rigs, and that further development into this sector is planned as well.
Bitmain is not the only company that is looking to expand across the Chinese boarder. China’s second largest mining firm known as Canaan Creative is also looking to makes in the crypto market. The company announced plans for a traditional initial public offering (IPO) that will be launched on the Hong Kong Stock Exchange. The total revenue expected to be raised is USD 1 billion.