Chinese holding firm Wuhan General Group (China), Inc. is thick in discussions to convert a former United States Defense Department facility into a crypto mining farm.
This is according to a press release that was published on September 11.
Should negotiations prove successful, the company would receive the first batch of rigs next month, with more to follow in the next few months. In transforming the facility, Wuhan General Group is planning to benefit from low electricity charges in the U.S., a cool climate, and high-speed Internet, which is significant for mining operations.
The 55,000 square foot data center with more than 3MW of power can supposedly house up to 1,300 mining machines, with 12,000 to be added after its renovation to a 30MW facility next year. The company is projecting the mining farm to produce around $3.5 million based with the initial 1,300 mining machines per month.
Wuhan General Group CEO Ramy Kamaneh said:
“We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy. The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market. We acted in the best interests of the Company and its shareholders and firmly believe that the market has bottomed and a bullish market is starting again.”
A number of states in the U.S. are known for low energy costs, which make them an appealing destination for mining firms. A few months ago, New York state regulators gave the green light on a new electricity rate scheme for cryptocurrency miners that would allow them to negotiate contracts.
- Hyundai Commercial Works With IBM for Blockchain Development 15 February 2019
- SEC Begins Review of NYSE Arca’s Bitcoin ETF Rule Change 15 February 2019
- Government Involvement Key to Crypto’s Success, Says Terry Duffy 15 February 2019
- Bradesco Closes Accounts of Local Crypto Exchange and Owners 15 February 2019
- JPMorgan Chase to Introduce “JPM Coin” 14 February 2019
Blockchain4 days ago
Santander Reaches $700 Million Deal to Use IBM’s Blockchain Tech
Cryptocurrency6 days ago
Crypto Could “Challenge Any Framework,” Says Financial Stability Board
Blockchain5 days ago
Blockchain Can Make Government “Incapable of Being Bribed” Says Overstock CEO
Cryptocurrency4 days ago
JPMorgan Chase to Introduce “JPM Coin”