A Nevada-based cryptocurrency investment company is planning to convert a US Department of Defense facility into crypto mining data center.
The company, Wuhan General Group (China) Inc, has seized the opportunity to use the redundant facility, originally called the Defense Department Data Center, for its mining project which will eventually be able to tap into a power supply able to support a total of 1,300 mining rigs.
Amid stiff competition around the world, companies are finding it increasingly difficult to find locations suitable for Bitcoin mining. The US has seen a flurry of activity this year with numerous outmoded plants being readapted for crypto mining.
Many aluminum sites around the country have been readapted towards utilization for mining. Alcoa World Alumina and Chemicals (AWAC), with customers in China, the United States, Europe and Brazil, have notably seen some of their old operational US sites for aluminum processing go.
Bitmain has been creating mining supersites, mining farms on a scale never seen before. Other major cryptocurrency mining firms like Coinmint are also building similar sites. Ramy Kamaneh, Wuhan General Group’s CEO, maintains that it was just a matter of time before the company seized the opportunity to become another overseas company to mine in the US:
“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. The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market.”
Once negotiations have been completed, the first 1,300 rigs will be installed in October, followed by the potential to add 12,000 more rigs in 2019. The initial installation according to the company should create a monthly revenue of USD 3.5 million.
The challenge for industrial-scale crypto mining in the US as the sector moves forwards is to develop more sustainable methods of operating, such as utilizing more hydroelectricity. A good example of how this can be both profitable and ecologically sound is DPW Holdings new Installation at Valatie Falls, New York, and geothermal plants in Iceland.
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