It seems the cryptocurrency mining market is not cooling off as we mean. The proof is that a new Bitcoin mining farm has been established in the US. Crusoe Energy Systems, a company that converts natural gas to energy-intensive computing, is building a new Bitcoin mining facility.
The new Bitcoin mining farm
Crusoe Energy Systems’ new Bitcoin mining farm will receive further funding coming from two rounds. A round of $ 30 million in equity funding comes from current investor Bain Capital Ventures and new investor KCK Group, with the participation of Founding Funds, Winklevoss Capital, and Polychain Capital. Meanwhile, the remaining is $ 40 million in project financing from New York-based Upper90 credit fund.
Chase Lochmiller, CEO Crusoe, said:
“The company will install 70 units next year, each with a capacity of about 1 megawatt (MW). Crusoe has also raised $ 70 million in fresh capital to fund its projects.”
From his projects and the new Bitcoin mining farm project, Crusoe intends to solve the growing problem of gas. There are nearly 497 billion cubic feet of natural gas are flared annually in the U.S. This is enough to provide over 10 million homes.
With the new Bitcoin mining farm, Crusoe will use about 10 million cubic feet a day of gas, which otherwise would have got wasted to solve the environmental and economic problems for the oil and gas industry. Specifically, Crusoe is planning to deploy 40 Digital Flare Mitigation (DFM) systems in the first half of 2020. Moreover, DFM systems can be expanded to millions of cubic feet per day. They can even be deployed anywhere in the US or Canada.
US on the journey to replace China in the field of cryptocurrency mining?
It seems that the war between the United States and China doesn’t end at the trade war. Both countries are on track to becoming an empire in the field of cryptocurrency mining. And the United States may be covertly replacing China’s position in this area. In November 2019, Whinstone US Inc. and Northern Bitcoin AG merged to open a 100-acre bitcoin mining farm in Texas. Meanwhile, the largest cryptocurrency mining company Bitmain has just launched a 50-megawatt farm in Texas.
Texas should be the preferred choice for cryptocurrency mining companies because of its abundant energy and cheap electricity. But that’s not the only reason bitcoin mining companies are flocking to Texas. Instead, regulatory stability is the main driver.
However, about 70% of the cryptocurrency mining market is currently dominated by Chinese miners, and the top five known mining groups are also based in China.
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