Ex-Core Scientific veterans lead block reward mining startup Blockcap

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U.S.-based startup in the block reward mining space Blockcap Inc. issued a press release announcing its formation in Las Vegas, Nevada. 

The ambitious venture was formed by merging the assets of five pre-existing BTC mining companies. By leveraging its newly assembled hashing power, the company expects to benefit from the economies of scale in purchasing equipment and managing energy cost to achieve higher returns.

Some news outlets have already reported that the new blockchain mining company will be the largest independent digital currency mining operator in North America. 

Veterans of regional blockchain hosting giant Core Scientific founded the company. They created Blockcap primarily to purchase and to operate digital asset mining equipment based on the outdated block reward mining business model. So far, all the company’s mining equipment is co-located in Core Scientific’s data center facilities.

According to Blockcap’s press release, its present mining fleet includes nearly 13,000 next-gen Bitmain S19 ASIC mining rigs and 500 upgraded S17s. Of that total, 8,442 are currently online, and another 1,426 are in the process of being deployed. 

The current hashing power is approximately 800 petahashes and forecast to hit nearly 1 exahash at full deployment. Based on the BTC’s existing mining network hash rate, Blockcap’s operation could produce almost 0.75% of its total processing power. 

“From the team we have put together, to our state of the art ASICs, and our top-notch infrastructure partners, we are proud about what we have achieved with Blockcap,” said Peter Novak, president of Blockcap. “Moreover, we have the resources and relationships necessary to continue to scale Blockcap’s mining operations in a financially efficient manner to take advantage of the rapidly expanding market for digital currency.”

Q3 of 2020 saw Blockcap mine 425 BTC tokens. During this period, Blockcap claimed it operated on a positive cash flow basis, and it predicts further BTC revenue growth in Q4. Blockcap will explore expanding its operations by adding more ASIC servers and purchasing other existing blockchain mining companies in the coming months.

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”