It looks like North America is about to become a major player in the bitcoin mining sector thanks to companies like Core Scientific.
Core Scientific Is Paving the Way
The enterprise has recently inked a deal with a mining equipment venture in Malaysia to purchase more than 17,500 Antminer machines from Bitmain. The company has already gotten its hands on some of these machines and have installed them so that miners can begin extracting new coins. The rest of the machines are slated to arrive by the end of September.
This represents a huge move for both America and the mining sector in general for several reasons. For one thing, mining ventures were largely impacted by the spread of the coronavirus earlier in the year. Many companies, such as Riot Blockchain, were reporting hardcore suffering brought on by the lack of mining operations and the lack of equipment sales, as many mining ventures – both large and small – were considered non-essential businesses.
As a result, equipment was not being purchased and people were shutting their machines off as bitcoin’s price began to plummet like it had never plummeted before. Riot Blockchain was struggling each month just to break even, while other ventures – such as Digital Farms in California – said that they would be shutting down indefinitely, and couldn’t give crypto players an idea as to when their doors would open back up again.
In addition, bitcoin and crypto mining has largely been dominated by China. However, the country went through something of a rigamarole last year when it was struggling to decide if mining should even be allowed to continue. Chinese regulators claimed that bitcoin mining was the cause of several environmental hazards. Thus, they were considering placing a ban on the practice.
This ban never came to be, but it did open a door for several miners in North America and surrounding areas to take advantage of lowered energy costs and open space to earn their spots in the medium of crypto extraction. While China remains a dominant force when it comes to crypto mining, North America and other regions appear to be catching up.
Russell Cann – chief customer success officer of Core Scientific – claims that the company can quickly grow to encompass roughly 450MW of power at its present headquarters. In addition, approximately 46 percent of the company’s mining equipment will run via renewable energy sources such as natural gas.
Love for Crypto Is Pushing the Mining Sector
In a statement, he explained:
As part of our market monitoring efforts, we’re actively tracking this increased interest in growing hash rate via North American mining operations. In fact, our team’s growth is based on this. Our view is that this rise in interest and increase in capital allocation and investment can be attributed to the growing acceptance of crypto and/or digital assets as an investment asset class.