U.S. company buys 17,000 Bitcoin mining equipment from Bitmain

 

The US blockchain hosting provider, Core Scientific, has signed an agreement to buy state-of-the-art Bitcoin Mining Machines (BTC) from China’s leading producer of mining hardware, Bitmain.

Core Scientific will purchase more than 17,000 S19 Antminer from Bitmain, on behalf of its customers and for its own use. According to Core Scientific, this will be the largest number of S19 machines purchased by a single blockchain hosting company.

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Kevin Turner, president and CEO of Core Scientific, and former chief operating officer of Microsoft, said: „Core Scientific received and began testing the first of Bitmain’s newest ASIC miners, and has seen material success in increasing the existing hash rate to reach 110 TH/s ± 3%.

The agreement comes as Texas has begun to attract a number of mining facilities.

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Last October, Bitmain opened „the world’s largest facility“ for Bitcoin mining in Rockdale, Texas. In January, it was reported that SBI and GMO, two Japanese blockchain-related companies, signed an agreement with Whinstone, a subsidiary of Northern Bitcoin AG, to process cryptomoney transactions at its Rockdale facility.

Increased interest in North America

Speaking to Cointelegraph, Russell Cann, Head of Customer Service at Core Scientific, acknowledged the growing interest in increasing the hash rate through mining operations in North America and explained why:

„Our view is that this increased interest and increased capital allocation and investment can be attributed to the growing acceptance of cryptoactives and/or digital assets as an investment asset class, as well as the favorable investment characteristics of North America, specifically a stable geopolitical and regulatory environment, appropriate weather conditions and multiple energy sources.

According to Cann, mining regulations in other jurisdictions have historically been „a fiasco,“ creating uncertainty for mining investors. In contrast, having mining facilities in North America is beneficial because of „the stability of the electrical system, as well as the regulatory environment surrounding land ownership.

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He also said that the recent fall in energy prices makes the North American region much more attractive:

„It is important to note that, with the fall in energy prices, lower cost energy areas in the US and Canada are creating some unique project opportunities for larger scale miners, such as Core Scientific, to consider.

However, this does not mean that investors are abandoning other Crypto Trader mining operations in countries such as China. Cann suggests that investors would be looking to diversify their investments globally.