Reshab AgarwalBitcoin mining has become very popular in the past few months. If we take a look at the mining history of Bitcoin, then it’s important to know that these miners are holding their coins in their bitcoin wallets. This is because Bitcoin is doing really well and seems to have a great future. It is also why more companies are expanding their Bitcoin mining operations. One such company is RIOT that recently purchased a Bitcoin mining site in Texas for $650 million. At the same time, another company Blockcap has set up its headquarters in Austin.
RIOT mining site purchase
Image Source: Los Angeles Times
The Bitcoin mining site that RIOT purchased for a whopping $650 million was a project started back in 2019. The idea of the project was to create one of the largest bitcoin mining facilities globally. It was owned by Northern Data AG that has many other similar projects. RIOT paid the company in cash and blockchain shares of their company. After the deal is finalized, Northern Data AG will own 12% of RIOT’s shares. Reports suggest that the reason behind this sale was that Northern Data AG wanted to focus on other sites.
Northern data claims that their systems are highly efficient and use industry-leading tech. At the same time, they also have proper access to renewable energy resources. This is particularly important because of the high energy usage in Bitcoin mining. If a company solely depends on electricity for the purpose, the cost of mining will be very high, and the carbon footprint of the operation will be huge. This will result in a lot of backlash from the community and wouldn’t be a good thing even in general.
Blockcap’s new headquarters in Austin
Image Source: www.blockcap.com
Another company that has advanced into the Bitcoin mining industry is Blockcap. The company has recently set up its headquarters in Austin. It has also planned to use a fixed of $75 million to purchase Bitcoin mining setups. This will make it among the biggest mining companies globally. The company was also praised for bringing about innovation in the state. Texas is slowly becoming a hub of companies that drive innovation in different industries. We have Tesla in the EV industry, and now we Blockcap in the BTC market. There are many other companies too in the state.
Even after so many large companies, the US market is the 2nd largest in terms of BTC mining. China is still at the top, accounting for more than 70% of the global hash rate. So, many US companies are taking it up to themselves to help change that. Talking about Blockcap, they want to expand to different locations from their headquarters in Austin and continue to grow as a mining company.
What are your thoughts on the expansion of RIOT by purchasing a $650 million mining site? And Blockcap establishing its headquarters in Austin? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Bitcoin struggles to take ground at the $58k price point.