Crypto Watt LLC plans to establish a mega Bitcoin mining facility in the state of Montana in the United States. The company is reportedly investing over $75 million to develop and operate the mining hub. The plant is going to be built on a 53-acre industrial complex that has been acquired by the company in the cities of Butte and Anaconda.
Montana: An Emerging Bitcoin Mining Hub
In a statement to the Montana Standard, Dan Burrell, the CEO of Crypto Watt LLC expressed optimism about the project. He explained that the company is looking to make sure the facility is built to the level of sophistication that will allow it to compete favorably with other data centers.
Burrell further expressed his confidence in the economic merits of the company’s plans citing the project’s sustainability over the long run.
As part of the company’s plans, they have already partnered with Canadian tech company, Global Blockchain Tech. The partnership will see the latter use the soon to be built American mining center.
The projected timeframe for the launch of the project is scheduled for the end of the first quarter of 2018. When completed, it will be the second Bitcoin facility to be established in Montana in two years.
By virtue of its geographical location near the Canadian border, the state of Montana is a much more suitable place for large-scale Bitcoin mining facilities. The climate in the region is predominantly cold, and provides a huge natural heat sink for mining activities.
With the increasing size of the Bitcoin network and the advances that have been made in mining technology, the heat output has also increased. The use of Application-Specific Integrated Circuits (ASIC) while expanding the hashing power of Bitcoin miners also requires an enormous amount of electricity.
The Project Spokane bitcoin mining facility in Missoula is one of the largest energy consumers in the Northwest region of the United States.
Further, as the number of Bitcoins left to be mined is reduced every day, it has made hashing much more difficult as well. This increase puts even more significant emphasis on data centers being used to handle difficult computational activities.
For many years, China has enjoyed a monopoly in the Bitcoin mining scene. There are large bitcoin mining centers in several provinces in China that are taking advantage of cheap electricity and labor. Many of these facilities are located near hydroelectric power stations for easy access to power.
This development has led to fear of mining centralization and the emergence of heavy hands within the network. However, following recent moves by the government in China to restrict Bitcoin mining, opportunities have been created for other countries to take advantage of the development and invest heavily in mining.
Bitcoin continues to be the most valuable cryptocurrency in the market regarding both price and market capitalization. Despite the recent decline in the price, there are indications that a resumption of the upward growth trajectory is on the horizon as government regulatory policies become more defined.