Viking Data Centers and BIT Mining Limited are partnering to build a Bitcoin mining facility in Ohio, USA. The facility is anticipated to start mining Bitcoins in 2022.
BIT Mining Limited comes to Ohio
BIT Mining Limited stated in a press release on September 22, 2021, that it has agreed to a $12.14 million stock purchase deal with Viking Data Centers to start a Bitcoin mining operation in Ohio.
The mining business will be funded by BIT Mining Limited, which will invest $10.84 million. The balance of $1.3 million will be paid in cash or Class A shares. Viking Data Centers owns 49 percent of the mining facility, while BIT Mining Limited holds 51 percent.
The plant is anticipated to be operating by February 2022. It will be executed in three stages. It is projected to have 11 MW of energy capacity at the conclusion of the first phase, slated for Oct. 15, 2021, followed by 39 MW and another 35 MW in the second and third stages. The final two phases are scheduled to be finished on November 15, 2021 and February 15, 2022.
As a result, the site’s final energy capacity should be 85 MW. According to the announcement, BIT Mining Limited has supplied 1,016 mining devices in the United States.
Bitcoin mining giant from Hong Kong expands overseas
BIT Mining Limited, located in Hong Kong, is a major cryptocurrency mining business. The firm owns the whole mining pool business that operates under the BTC.com brand, as well as the domain name BTC.com.
The firm has revealed its intention to expand beyond the Chinese market. In July 2021, it paid $6.6 million for 2,500 Bitcoin mining equipment to be installed in Kazakhstan. This acquisition is in addition to the 3,819 computers that are currently in use in data centers around the country, as well as the 4,033 machines that are on their way. When all machines are deployed, BIT Mining’s hash capacity is projected to exceed 450 petahashes per second.
Along with Standard Power’s nuclear-powered mining farm, the BIT Mining and Viking Data Centers Bitcoin mining sites will contribute to Ohio’s crypto economy.
What is Bitcoin Mining?
Bitcoin mining is the process by which new Bitcoins are generated. Mining is mainly done by large, specialized companies who make use of custom-made processors (called Application-Specific Integrated Circuit) that compute the hashing function of the Bitcoin blocks.
As more and more people started to mine Bitcoins, it became clear that something had to be done in order to keep mining profitable. The difficulty of calculating numbers for a block is recalibrated every 2 weeks.
Whenever a new block has been mined, all miners compete against each other to calculate the next set of numbers for the next round. The miner who manages to calculate these numbers first will get his reward which is 12.5 Bitcoins.
Maintaining the network and the blockchain isn’t free. Because of this there are transaction fees for sending coins.
How much does Bitcoin mining cost?
Bitcoin mining is the process of finding Bitcoin blocks on Bitcoin’s blockchain. The first miner to find a block gets its reward, which is currently 12.5 Bitcoins.
Mining is expensive and time-consuming. To mine one Bitcoin, you need calculations that would take years on a regular computer. That’s why miners use specialized hardware for this process – rigs with powerful processors called ASICs that are designed to mine Bitcoins at an increased speed.
To fuel these rigs, miners need electricity – lots of it!
How does the price of electricity affect Bitcoin mining?
The cost of electricity has a huge impact on Bitcoin mining, especially in countries like China where the price of electricity is high.
When the electricity price is high, miners usually switch to different cryptocurrencies that can be mined at a lower cost. For example, Litecoin.
For Bitcoin mining to be profitable and sustainable for miners, they need to consider the price of electricity and its volatility.