In Texas, it is planned to build the world's largest bitcoin mining farm

Colin Baseman

Bitcoin continues to reduce quotes. At the same time, world leaders in mining cryptocurrency #1 are opening new "farms". Paradoxically, this is a fact.

Bitcoin exchange rate decline

Bitcoin trading in recent days is held in the red zone. Earlier, the indicator broke the level of 8 thousand dollars, and then quickly broke the mark of 7 thousand dollars. Next, the world saw a correction, after which the trades were held in a narrow range.

This trend has led to the fact that experts began to comment on the difficulty ribbon, reporting the surrender of miners. They sell the mined coins and refuse to keep them for the future to ensure profitability. Not everyone shares this view.

The crypto enthusiast Willie Woo said, "Halving has never been conducted in a bearish trend. Miners are actively selling coins, which indicates their surrender. In the past, we were ahead of events, forces were put in favor of buyers. Coin miners tried to arrange sales after the halving, after the decline in their income. This arrangement is unique, and a bearish trend is clearly visible before the event."

As a result, the "fear index" is at its maximum value. Technical experts reported that the risks of subsequent decline are increasing and their probability is higher than the subsequent recovery. The capitalization of the crypto market fell below the $ 200 billion mark. At the same time, the bitcoin dominance index is around 66%. In the article "Mining farm in 2020. Is it profitable?” you can read about the feasibility of opening a business for mining cryptocurrencies in the beginning of the year.

New mining areas will be as big as 57 football fields

The Northern Bitcoin company based in Germany has entered into a merger agreement with Whinstone US based in the US. The partners will build a data center for mining Bitcoin coins in Rockdale, Texas. Its capacity will be 1 GW. It is expected that its area will exceed 40 hectares, which corresponds to 57 football fields.

Some structures will be built in the first quarter of 2020. As a result, the capacity will be 300 MW. The work will be completed at the end of 2020. The new data center is expected to be the largest in North America.

Another important news is the release of the mining equipment manufacturer Canaan Creative on the American stock exchange. As a result, the company from China was able to raise $ 90 million through the Nasdaq platform. The manufacturer has placed 10 million ADS a cost of $ 9 per share. Auctions were held in the range of 9-11 dollars.

Details about the construction of a new data center

The object will be built in 3 stages. All of them will be held during 2020. The company issued a press release announcing the presence of 2 clients (names are kept in secret). According to preliminary data, these are two corporations registered on the exchange, whose activities are related to bitcoin mining.

Aroosh Thillainathan, who is part of Whinstone's top management, said: "Northern Bitcoin AG is the best partner for positioning and successful development of the project in the capital market. After the merger, the organization will get additional opportunities to create a future course for the global cryptocurrency mining industry."

Weeks earlier, bitcoin mining giant Bitmain announced that it was ready to open its farm in Rockdale. The postponement of the project lasted almost a year. Representatives of the crypto giant reported that the energy consumption for mining will reach 50 MW, with time the parameter should increase to 300 MW. As a result, Bitmain will become the largest company engaged in bitcoin mining.

Northern Bitcoin, along with Whinstone, said that the capacity of their facility will exceed 300 MW. This indicator will be achieved after the first phase of construction work. This means that according to the plan, the capacity of Whinstone / Northern Bitcoin will be greater than that of Bitmain, and even before the start of the second stage of construction.

This statement is very optimistic, since the company's official website states that its employees are no more than 50 people. In turn, Bitmain employs about 3 thousand people, and its annual revenue is estimated in billions of dollars. Perhaps soon we will see a confrontation between potential and real giants in the field of cryptocurrency mining.

Mathis Schultz, who holds the position of Northern Bitcoin, noted: "The merger will allow us to reduce the time until the event when we will become leaders in the field of bitcoin mining. In recent years, the Whinstone team has done professional work. Now its actions are confidently aimed at achieving leadership in the blockchain industry."

Whinstone started its business 5 years ago. Since then, it has opened centres for the extraction of crypto currencies in European countries, including the Netherlands and Sweden. Northern Bitcoin was registered in 2018. Today, it operates a data center in Norway. According to official information, only renewable sources are used to create energy.

In turn, Bitmain closes its offices in various countries. For example, this applies to Amsterdam. The office will be closed as part of the business reorganization. The company also intends to discontinue its research center in Israel.

Bitcoin has fallen in price, and the world's mining giants are increasing their capacity. If you want to enter the field of cryptocurrency mining, carefully analyze all the advantages and disadvantages. Now there are suitable conditions for buying Bitcoin. Therefore, seriously consider investing in the # 1 cryptocurrency in the world.