The withdrawal from mining continuesEndy Callahan
Mining firm Great North Data initiated bankruptcy proceedings. It operated bitcoin mining operations in the provinces of Labrador and Newfoundland in Canada.
The bankruptcy of one of the largest mining companies
The bitcoin mining company was previously supported by regional and Federal business development agencies, and its debt is $ 10 million. According to official estimates, Great North Data has $ 3.5 million in assets.
Created under the leadership of the province, Business Investment Corporation, has debts of 238 thousand dollars. Collateral for the debt is the organization's building, equipment, cars, and land in Labrador.
The unsecured borrower of the company is the Agency of the Canadian government, which is responsible for promoting business in the Atlantic region, Atlantic Canada Opportunities Agency. At the end of 2015, the organization invested $ 380 thousand in Great North Data on full refund terms. To date, the mining company is in debt to ACOA in the amount of 213 thousand dollars.
Another $ 240,000. Great North Data owes electricity supplier Newfoundland and Labrador Hydro, and owes $ 171,000 to the Bank of Canada's business division. They are unsecured creditors.
In 2017, the largest manufacturer of mining equipment, Bitmain, filed a lawsuit against Great North Data for non-compliance. The case is currently ongoing.
The official website of the Great North Data is not functioning. The archive part of the resource says that the company started its activities in 2013, it has gone from a "startup in the basement" to the largest regional supplier of computing power. There was no information about the reasons for the bankruptcy of the Canadian mining company.
At the same time, large mining projects are being implemented in the United States. In the article "Mining farm in 2020", you can get acquainted with the forecasts of experts regarding the feasibility of investing in the purchase of equipment for cryptocurrency mining.
The largest cryptocurrency mining center will be launched in Texas
Bitmain has completed the construction of a digital currency mining center in Rockdale, Texas. Its capacity is 50 MW. It is expected that in the future, the capacity of the equipment will grow to 300 MW, as a result, it will become the largest on the planet. Bitmain announced these plans.
As a result, new jobs will be created in the region. The company will work closely with local authorities to train experts in the field of blockchain and data center services.
The first stage of construction is projected to be completed by the end of March 2020. The capacity of the bitcoin farm will reach 300 MW. By the end of next year, the data center will reach its maximum capacity, which will reach 1 GW. When the facility is completed, it will cover an area of 40 hectares. This corresponds to the size of 57 football fields.
The project will be implemented as a result of the merger of Whinstone and Northern Bitcoin, the management of the former will join the latter. This should happen in the coming months.
Cryptocurrency mining company Hut 8 again recorded a profit
The Canadian Hut 8 income exceeded expenditures. This is reported by the company's financial report for the second quarter of 2019. Thus, the organization reported a net profit of $ 25.3 million, and for the same period in 2018, it received a loss of $ 3.6 million. Revenue reached $ 21.3 million, which is 262% higher than in the second quarter of 2018.
Andrew Kigel, who is the CEO of Hut 8, commented on the financial performance of his company: "The second quarter of this year showed the best result for our company since the date of its opening. We managed to lower the cost of mining cryptocurrency to 2757 dollars. If at the beginning of the period bitcoin was worth $ 4158, then at the end of the quarter it was already $ 10817."
Kigali told that at the end of last year the company has taken decisive action to reduce costs. They are designed to maintain a "minimized" structure.
Hut 8 allocated $ 7 million to acquire data centers
Hut 8 Mining Corp announced plans to buy 9 data centers in Bitfury Group. $ 7 million will be spent on closing the deal. This allowed the company to complete the preparation of mining equipment in Drumheller (Canada). Now the company is fully prepared for mining.
Andrew Kigel noted, "The expansion provides an opportunity to get full ownership of the company in Drumheller, which will result in a subsequent reduction in costs. The funds for the purchase were allocated from the company's balance sheet, which is quite large after the transaction is closed and before the payment of debts."
The company said that thanks to the purchase of data centers, it will be possible to increase the computing capacity of Hut 8 by 16%. Today, it owns 2 sites for mining cryptographic currencies in Canada, which are based on 94 BlockBox AC data centers with a capacity of 110 MW. 9 systems use ASIC Bitfury Clarke chips.
Hut 8 achieved a 58% return on business and revenue of $ 26.7 million. Earnings before taxes, depreciation and amortization exceeded $ 14.5 million. The company is one of the largest mining companies in the world.
The results of the work of mining companies differ. Some go bankrupt and close, others expand. The increase in the value of bitcoin allowed those who were able to survive the wave of price reduction to stay afloat. Many experts note that it is now better to buy cryptographic currency than equipment for its extraction. If you are looking for an investment opportunity, bitcoin offers excellent prospects for this.
Interview with Gen2 on The Capital07 Oct, 2020 Colin Baseman
TOP 10 crypto world news for October 2, 202002 Oct, 2020 Annabella Cornelly
TOP 9 crypto world news for October 1, 202001 Oct, 2020 David Kemp
TOP 10 crypto world news for September 30, 202030 Sep, 2020 Judy Rubio
TOP 9 crypto world news for September 29, 202029 Sep, 2020 Endy Callahan
TOP 10 crypto world news for September 28, 202028 Sep, 2020 Colin Baseman