A U.S. Department of Defense data center will be transformed into a cryptocurrency mining farm later this by the Chinese investment firm Wuhan General Group, which recently purchased the facility.

Advancing the Mining Economy

Based on successive rounds of negotiation, the mining rigs will begin arriving in October. Wuhan voiced the usual narrative of choosing the U.S. facility–cheap electricity supply, cold climates and uninterrupted internet connections, all of which factor into forming a significant directive while setting up a mining farm

Apart from creating employment opportunities in the region, Wuhan aims to set a new mining center standards by scrutinization and to instill advanced security, safety and mining stability measures.

The 55,000-square-foot defense facility is equipped with 3MV of power and, based on these specifics, Wuhan estimates a total of 1,300 mining rigs can fill the facility. However, an additional 12,000 machines are expected after an upgrade to 30MV in 2019.

Based on financial projections, Wuhan the 1,300 machines will bring in $3.5 million per month. However, this number is poised to increase over time as rig capacity is added.

Ramy Kamaneh, the CEO of Wuhan General, notes:

“We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy.”

Wuhan Remains Bullish

Kamaneh added the company’s decision “to wait for market stability” was a solid choice considering the falling profitability of mining rigs. However, Wuhan’s shareholders now believe the market has “bottomed,” and a bullish market is in the cards.

Related: New Electricity Tariffs Introduced for Cryptocurrency Miners in Upstate New York

The development, however, comes after several U.S. districts introduced revised tariffs for potential crypto mining centers. In July, New York regulators passed an electricity rate scheme that allows mining businesses to negotiate contracts with utility providers in regard to usage and economic incentives.

Recently, the local government in Massena, N.Y., revealed its updated tariff conditions for mining businesses, which includes assessing firms on a case-by-case basis to provide electricity at variable rates. The move mitigates other customers from facing the brunt of higher tariffs.

Cover Photo by Steve Harvey on Unsplash

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Did you like this article? Join us.

Get blockchain news and crypto insights.

Join Us on Telegram

Shaurya MalwaShaurya Malwa Author

Shaurya Malwa

Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.

View author profile



Source link


Please enter your comment!
Please enter your name here