Bitcoin Mining Behemoth Bitmain Could Secretly be Creating a Mining Facility in the US
One of the areas that became extremely popular during the rapid rise of bitcoin prices during 2017 was that of bitcoin mining. While in the formative years of the world’s first cryptocurrency, individual miners were able to compete without having ultra-expensive mining rigs, this is no longer the case.
The space of bitcoin mining is extremely competitive these days, with large warehouses being full of top of the line hardware that mines around the clock. The competitiveness of mining has driven individual miners towards mining pools and more expensive equipment if they want to remain profitable in this space.
One of the leading companies in the cryptocurrency mining hardware sector is Bitmain. It was revealed recently that they have been creating new facilities quietly in the Pacific Northwest of America.
Why is This News Notable?
Bitmain has not yet publicly announced their developments in the United States, but it appears they are involved with a newly formed company named Ant Creek. Ant Creek has been in the process of developing mining facilities located in the state of Washington.
A Bitmain co-founder Jihan Wu is the only named governor of Ant Creek as revealed by a business data site. The company was started back in June 2017 in the state of Washington as a for-profit company.
There has been no address listed for this company, but according to the Walla Walla Union-Bulletin, the city known as the Port of Walla Walla is currently contemplating entering a land agreement with Ant Creek. If the city approves this agreement, it would see the company enter into a lease starting in January 2019, alongside an additional option allowing them to buy a maximum of 40 acres.
It is believed that if this deal goes through, there will be a cryptocurrency mining facility built and operated on this land. The deal would be a significant move due to the potential size of this operation.
There is also the nature in which this move is being made, with not a lot of noise coming from those involved. No public documents have linked Ant Creek and Bitmain which showcases that the concerned parties may want to keep this quiet.
The report showcases that these mining facilities are past the initial development stages. It discusses the potentially 15-20 new jobs that would be generated for the city, as well as between $7 million and $10 million in private investment that would go into the region.
Why Would Bitmain be Making This Move?
As Bitmain currently have most of their operations based in China, they are looking overseas to create new facilities due to crackdowns on cryptocurrency mining in China.
There have been certain energy parameters placed upon mining companies in the country, which is why the likes of Bitmain have been looking at locations in Switzerland, Canada and apparently now the United States to create new facilities.
Switzerland is very crypto-friendly, while the likes of Canada and the United States have fewer energy restrictions than China, as well as having the framework to support large-scale mining operations.