Core Scientific, a major player in North America's Bitcoin mining industry, has inked a mammoth deal with Bitmain in a move to expand its operations. The firm purchased around 17,000 Antminer s19s following the agreement. Notably, this is the next generation of mining equipment developed by the Chinese ASIC chip manufacturer.
This shipment marks the largest Antminer s19s to be imported by a U.S entity as competition against Chinese counterparts takes the center stage. Core Scientific has already installed some of the new generations ASIC miners in its data centers with the rest scheduled to arrive between now and September.
Core Scientific's Value Proposition in BTC Mining
The North America crypto-mining focused firm did not disclose the deal's value due to binding contractual terms with Bitmain. However, it is quite notable that both parties started talks earlier this year before the world's supply chain was interrupted by COVID-19. With normalcy now returning, Core Scientific is set to integrate the newly acquired s19s in its five mining farms.
According to the company's Chief Customer Success Officer, Russell Cann, Core Scientific's farms in Kentucky, Georgia, and North Carolina can produce 381 MW with the potential to scale up to 450 MW. The firm sources most of this power from natural gas and coal with claims of a ‘46% carbon-free' operation.
As hashrates increase in North America, Core Scientific has moved to capitalize on the growing market given its underlying potential. Cann emphasized that they have been tracking this market as a result,
“As part of our market monitoring efforts, we're are actively tracking this increased interest in growing hashrate via North American mining operations; in fact, our team's growth is based on this.”
China Still Dominates BTC Mining
Despite efforts to catch up, China continues to dominate the crypto mining scene and might not lose grip anytime soon. This is because of cheaply available electricity stemming from an oversupply in hydro energy dams built during the 20th century. Miners within China can pay as little as $0.02 KW per hour compared to $0.12 for a similar utility in the U.S. It, therefore, follows that BTC mining in China is more profitable given the amount of energy required for such operations.