TL;DR: German-based Northern Bitcoin AG apparently merged with Lousiana-based Whinstone US, Inc. in order to complete a 1-gigawatt capacity, over 100 acres Bitcoin mining facility in Texas. Companies within the industry have been flocking to Texas of late, making ever-larger announcements.
German & Louisiana Bitcoin Mining Companies Building Giant, 1-Gigawatt Farm in Texas
In press materials, both companies are referring to the merger as an effort to build the “world’s largest Bitcoin Mining Facility in Texas.” Whinstone US, Inc. operates a data farm already in its home state and in Sweden but has already reportedly broken ground on a giant Texas initiative. “On an area of 100 acres (equivalent to around 57 soccer fields), the largest data center in North America and the largest Bitcoin mining facility in the world are built in three phases with local construction partners,” the media release insisted.
The first phase is scheduled to be completed by early 2020, earning Whinstone more than 300 megawatts of capacity. “The total capacity of one gigawatt is expected to be available in the fourth quarter of 2020,” the company claimed. “The first customers of the new site are two stock-listed corporations that will use a significant portion of the capacity for Bitcoin mining.” The ambition is for mining proper but to eventually hold video rendering and AI applications as well.
CoinSpice reached out to mining experts, who, on condition of anonymity, explained the rush to Texas. “It is hype,” a miner unrelated to the merger nor the two companies involved dismissed. “You’ll notice more public companies are going to Texas for major projects lately.” Furthermore, the mining expert we consulted pointed to the plethora of gas-related energy and relatively generous tax arrangements particular to Texas causing the lure. “It’s the latest place that will let speculators speculate widely. The people throwing crazy numbers at Texas are the same that were throwing crazy numbers at Washington state, New York, South America, and even Canada.”
Whatever the actual facts of the matter, mining giant Bitmain launched its new cryptocurrency mining farm in Rockdale, Texas in late October. It too is a 50MW farm that also has plans to expand to a 300MW facility. Boasting more than 30,000 acres, the Bitmain project involves DMG Blockchain Solutions. The industry’s gravitational pull by Texas and other non-China geographies could also be the market responding to Chinese mining dominance overall.
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