The world’s largest bitcoin mining facility has recently opened in Rockdale, Texas. The operation is owned by Germany-based Whinstone Inc., which will rent out the facility to both SBI Holdings Inc. and Japan-based GMO Internet Inc. Both will work to extract new bitcoins using Whinstone’s equipment and Texas location.Whinstone Is Becoming the Primary Mining CompanyBitcoin mining has been a big deal as of late. While always a main staple of the industry, two large events have occurred in the space to bring even more attraction and attention to the mining field.The first was its declared legality in China. A nation that has long had a very mixed relationship with digital currencies, the country finally declared bitcoin mining legal within its borders in late 2019 following years of
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The world’s largest bitcoin mining facility has recently opened in Rockdale, Texas. The operation is owned by Germany-based Whinstone Inc., which will rent out the facility to both SBI Holdings Inc. and Japan-based GMO Internet Inc. Both will work to extract new bitcoins using Whinstone’s equipment and Texas location.
Whinstone Is Becoming the Primary Mining Company
Bitcoin mining has been a big deal as of late. While always a main staple of the industry, two large events have occurred in the space to bring even more attraction and attention to the mining field.
The first was its declared legality in China. A nation that has long had a very mixed relationship with digital currencies, the country finally declared bitcoin mining legal within its borders in late 2019 following years of contemplating a potential ban.
Many regulators in China believed that the process of extracting new cryptocurrencies and tokens was likely to cause irreparable harm to the environment, and China did not want to be responsible for furthering pollution.
Another big event is the halving, which is set to occur this coming May. The halving revolves around bitcoin miners, and all rewards surrounding the extraction of new coins are set to be reduced by half in about four months.
Some believe that the results will be positive. In the past, bitcoin halvings have caused the price of the asset to shoot up in spades, and several leading experts believe the same thing will happen again.
Others, however, are convinced that the cryptocurrency world will remain relatively unchanged, and that the halving isn’t likely to make much of a difference.
Either way, many companies are seeking new ways to enter the mining space and garner a profit before things get extremely competitive. Texas is widely considered to be a primary spot for new bitcoin mining operations given the state’s low energy costs. Whinstone claims that at press time, the entire facility has an “initial capacity” of 300 megawatts, but that it plans to reach one gigawatt by the end of 2020.
The company already boasts more power than a nearby facility operated by Chinese leading mining firm Bitmain. The company operates its mining facility in a former aluminum smelting plant. Aluminum helped garner Rockdale its present nickname of “the town where it rains money” given the city’s status during the peak of aluminum production in 1950s America.
Why Mining Is Making a Heavy Mark
Mike McGlone – senior commodity strategist at Bloomberg Intelligence – comments in a statement:
Bitcoin is attracting more institutional investors, and with the notion of limited supply and mass adoption, bitcoin is winning this race.
While Texas is widely seen as a top crypto haven, the region has also attracted many scam projects and enterprises and has issued several cease-and-desist orders during the past two years.