BIT Mining Limited (NYSE: BTCM) has become the latest company to expand its operations in the United States, this time heading to Ohio. The block reward mining company is splashing over $12 million to develop an 85 megawatts (MW) mining center in Ohio.
The New York Stock Exchange-listed operator has partnered with Viking Data Centers on the venture. The development of the facility will be completed by February 2022.
BIT Mining will invest $12.14 million in total on the joint venture. Of this, $10.84 million will be paid in cash to Viking, with the remaining $1.3 million payable to the company either in cash or in the form of ordinary shares. BIT Mining will hold 51% equity interest in the Ohio facility, which will be developed in three phases. The first phase will be completed by October 15, with the second and third expected to be completed on November 15 and February 15, respectively.
BIT Mining plans to continue investing aggressively in its block reward mining business by investing, acquiring, and developing high-quality mining resources globally, the company stated in its press release. It has shipped 1,016 mining machines to the U.S. The company owns the entire mining pool business operated under BTC.com, formerly owned by Bitmain founder Jihan Wu.
BIT Mining is the latest in a trend that has seen a rising number of block reward miners heading to the U.S. Friendlier regulations in some states, cheap electricity and a crackdown on miners in China have all played a part in this growth.
U.S. rise as mining Hub
The rise of North America, particularly the United States, as a mining hub has two sides: one is that of companies that were originally American and have continued to expand, while the second is that of those that have migrated to the “land of opportunity.”
Core Scientific belongs to the former, with the company expanding and it is set to list on Nasdaq this year at a $.4.3 billion valuation.
And then there are those that are eyeing or have relocated to the United States. Fred Thiel, the CEO of Marathon Digital, a BTC block reward miner, puts the number of mining rigs that have been booted out of China at over 500,000. He believes the U.S. could provide a home for them.
“500,000 formerly Chinese miner rigs are looking for homes in the U.S. If they are deployed, it would mean North America would have closer to 40% of global hashrate by the end of 2022,” he claimed.
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