The US has surpassed China as the world’s capital for cryptocurrency mining
A territorial fight is raging in a small Texas town of only 5,600 people over what is expected to become the world’s Bitcoin (BTC) mining capital. Bitdeer (a spinoff of Chinese bitcoin mining giant Bitmain) and Riot Blockchain, Inc. (NASDAQ:RIOT), both competing for market share and placement in a building once inhabited by Alcoa, are the fighters.
Since China banned cryptocurrency operations within its borders, miners have shifted their focus to North America, making the US the official top destination for Dogecoin (DOGE) miner and live streaming platform Hello Pal International Inc. (CSE:HP) (OTCQB:HLLPF), as well as BTC miners BIT Digital (NASDAQ:BTBT), Bitfarms (NASDAQ:BITF), and Greenidge Generation Holdings Inc. (NASDAQ:GREE).
Hello Pal International Inc. (CSE:HP) (OTCQB:HLLPF), headquartered in Vancouver, Canada, has announced the migration of its crypto mining machines to North America. The relocation followed a planned hunt for safe new locations for their freshly purchased ASIC miners.
Hello Pal is planning to re-house their Bitmain Antminer L7 Machines, which are considered in the Top 5 most profitable miners and the most profitable DOGE miner on the market.
“We believe that relocating our mining operations to North America would provide us with long-term stability in our crypto-mining activities,” stated KL Wong, Hello Pal’s Founder and Chairman.
“As a result, we’ll have a solid foundation on which to execute our ambitions to integrate crypto into our core social networking company.”
Following a thorough analysis of the best worldwide mining locations, Hello Pal and Shanghai Yitang Data decided to relocate the majority of their rigs to New York State, where all locations are set to use clean renewable energy (hydro-powered).
Bitmain will send each of the new mining rigs straight to the NY facility, which is likely to happen in November or December this year.
Hello Pal is also continuing to sell its existing Antminer L3+ mining rigs in China, with the money going toward the acquisition of brand new Antminer L7 units in North America.
Hello Pal had just announced record quarterly sales, the majority of which came from bitcoin mining, a week prior.
“We are quite satisfied with the progress we have achieved as a Company, and we feel the outcomes are reflected in the financial metrics,” Wong added.
“We’re particularly enthusiastic about our business’s increasing globalisation, as seen by our growth of livestreaming services outside of China and the incorporation of cryptocurrency into our platform via our newly established crypto-mining activities,” says the company.
Meanwhile, Riot Blockchain, Inc. (NASDAQ:RIOT) recently revealed its October 2021 output of 464 BTC at its Whinstone Facility in Texas, a 433% increase over its October 2020 production of 87 BTC.
Riot has said that their year-to-date production total is 2,921 BTC, which is a 257 percent increase over its BTC output during the same period in 2020, which generated 818 BTC.
The miner recently placed a $54 million order with Bitmain (the same firm that split out its neighbours Bitdeer) for 9,000 S19j Pro (100 TH/s) miners, which will be delivered between May and October 2022. Previous purchase orders for 11,500 S19J Pro Antminers are also slated to arrive at Riot’s Whinstone plant in November 2021.
BIT Digital (NASDAQ:BTBT), which announced an agreement to acquire 10,000 equipment from Bitmain in October, is also looking for additional miners. Bit Digital’s miner fleet hash rate is estimated to grow by over 1.0 Exahash (“EH/s”) as a result of the announced purchases.
“By contracting for these Bitmain units, we have opened a new channel in our procurement strategy, diversifying our access to miners,” said Bryan Bullett, CEO of Bit Digital.
“While we believe we continue to enjoy differentiated access to the miner spot market, and expect to continue our ongoing spot purchases, our deal with Bitmain is an efficient means to procure a large quantum of new miners on attractive terms. This is key, as we believe that scale is paramount in importance in the bitcoin mining business.”
It’s not just a battle for machines; it’s also a race for power. Bitfarms (NASDAQ:BITF) has announced the purchase of 24 megawatts (MW) of hydropower in Washington State, USA, and the signing of a memorandum of understanding (MOU) to increase the capacity to 99 megawatts (MW).
The news represents Bitfarms’ first foray into the US market, with the Ontario based business planning to host 6,200 Bitmain S19j Pro miners at the facility.
“The Washington farm meets all these criteria,” said Emiliano Grodzki, CEO of Bitfarms.
“With this acquisition, we enter the United States and continue our global expansion to 10 farms in operation or under development in four countries. The initial 24 MW acquisition will increase our total mining capacity to 106 MW and boost our total hashrate as additional miners are installed.”
Greenidge Generation Holdings Inc. (NASDAQ:GREE), not to be outdone in the race for good business relations with Bitmain, recently announced a deal to be the first global launch customer for the state-of-the-art ANTMINER S19 XP, which is said to be approximately 27 percent more efficient than any BTC mining technology currently available.
“We are excited to be chosen as a launch partner for this latest release from Bitmain,”
said Greenidge’s CEO Jeff Kirt.
“The ANTMINER S19 XP demonstrates a step-function increase in efficiency for our industry, and we are excited to deploy this next generation technology at one of our 100% carbon-neutral facilities.”
The efficiency of the ANTMINER S19 XP is 21.5 joules/TH, compared to 29.5 J/TH for Bitmain’s earlier S19 Pro technology. The machines will use 27% less energy per terahash while providing 37% more processing power per kilowatt-hour than current technology. Greenidge plans to deliver the order in Q3 2022, following which they will be deployed to a site in either South Carolina or Texas.