Crypto mining firms are popping up all over America at the moment. This is thanks to the low cost of power, high-speed internet, and cool climate accessibility. Anyone that understands crypto mining knows that these three ingredients are the holy grail of a successful crypto mining operation. It is for these three reasons that the Wuhan group has decided to purchase a US government data center, converting it into a state-of-the-art crypto mining farm. The current data center already has over 3MW capacity and Wuhan is looking to install 1300 crypto mining rigs in the coming weeks.
Next year, it has plans to expand this capacity up to a 30MW facility with a further 12,000 mining rigs. The first batch of crypto mining rigs will hit the new crypto mining farm floor towards the end of October and will begin by mining Bitcoin, Zcash, and other cryptos using the SHA-256 protocol.
Bear Market Holding Operations Back
The recent bearish market has been playing on everyone’s mind and the same question has been on the tongues of investors and CEOs alike – when will it be over? While nobody can answer that for certain – unless you’re a whale and plan to create the next massive pump – numerous top minds from the industry agree that the price will partially recover by the end of 2018. However, it’s this bull market that has got crypto miners worried. With the price of BTC – and all other cryptos – slowly sliding downwards and the network hash rate increasing, mining is becoming unprofitable.
Ramy Kamaneh – Wuhan General Group CEO – 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” – reaffirming the bearish market is having negative effects on crypto miners.
Miners Getting Innovative
In the current harsh crypto mining climate, firms are having to become increasingly more innovative with their approaches to remain profitable. TMGcore decided to soak its ASIC mining chips in 3M Novec in order to keep the chips cool and reduce its power bills, and another firm bought an old hydroelectric dam and refitted it with new tech and crypto mining rigs in a bid to keep its power bills down. The crypto industry needs more mining firms to open up shop, but under current market conditions it is proving to be quite a tall task.
Crypto mining is the beating heart of most cryptocurrencies, and without the process blockchains would become centralized and corruptible. With Wuhan deciding to open up operations in America, it helps give the country another foothold in the crypto mining industry.
