The Tech Capital International Finance Forum
Trending
Latest

BIT Mining increases investment in 150MW Ohio crypto data centre

The increased investment will fund the buildout of the 65MW of additional power capacity. This will be developed in two phases, with 25MW in the first phase and 40MW in the second.

By João Marques Lima

Founder and Editor, The Tech Capital

4 Mins

October 19, 2021 | 3:19 AM BST

Crypto miner operator BIT Mining Limited (NYSE: BTCM) has strengthened its collaboration with Viking Data Centers, LLC by increasing its investment in the Ohio cryptocurrency mining data centre.

The Ohio Mining Site, which is being jointly developed with Viking Data Centers, will add up to 65MW of power capacity in addition to the 85MW per the original design, bringing the site’s total planned power capacity up to 150MW.

BIT Mining will increase its investment by approximately US$11.0 million, $9.8 million of which will be paid in cash and the remaining $1.2 million, payable to Viking Data Centers will be settled either in cash, or in the form of Class A ordinary shares, par value $0.00005 per share of the company, at the company’s discretion.

BIT Mining explained that upon the successful execution of the increased investment, the company’s equity interest in the Ohio Mining Site will be increased to 55%, and Viking Data Centers will hold the remaining 45%.

The increased investment will fund the buildout of the 65MW of additional power capacity. This will be developed in two phases, with 25MW in the first phase and 40MW in the second.

The parties currently expect to reach these power capacity milestones by February 15, 2022 and March 31, 2022, respectively.

The transactions contemplated by the increased investment are subject to customary closing conditions.

The ramped-up collaboration has been based on BIT Mining’s assessment of the current business and regulatory environment, as well as the strength of the Ohio Mining Site development team and the project’s anticipated cost efficiency.

The company originally committed to investing invest a total of $12.14 million in the project.

Xianfeng Yang, CEO of BIT Mining, said: “Our multi-site approach and geographic diversification has provided us with greater flexibility to shift resources and capitalize on regions with more favourable market dynamics, and over time, generate greater returns for stakeholders.

Related Article

Russia could impose new energy tariffs in response to China’s crypto mining exodus

Moscow said it is considering new energy tariffs aimed at cryptocurrency miners as Chinese business…

“We will continue to execute on our plan, investing in technology, innovation and high-quality mining resources around the world, while building a strong foundation across the cryptocurrency ecosystem.”

BIT Mining said it has also terminated its Texas cryptocurrency mining data centre cooperation with Dory Creek, LLC, and will limit power capacity at its Kazakhstan cryptocurrency mining data centre to 40MW, to optimise the cost-effectiveness of its data centre deployment.

Upon completion of the cryptocurrency mining data centres in Ohio and Kazakhstan, BIT Mining expects that, by March 2022, its cryptocurrency mining machines will have access to a total power capacity of up to 190MW.

Elsewhere, BIT Mining has become one of the latest companies to exit China as a direct consequence of Beijing’s blanket ban on the crypto mining industry.

The operator said in a statement: “To comply with local regulations, BTC.com [BIT Mining’s mining pool subsidiary] will cease registering new users from mainland China and expects to start retiring the accounts of existing users in mainland China in an orderly manner starting on October 15, 2021.

“BTC.com’s discontinuation of service to users in mainland China may adversely impact the consolidated financial statements of the Company.

However, the company believes that its growth in global markets will help offset the loss of business in mainland China. Going forward, the Company plans to intensify its business expansion efforts and accelerate its global development.”

Daily

Daily Brief

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Tech Capital's writers

Login or Register to comment on this article

More From

João Marques Lima

Founder and Editor, The Tech Capital

Related Articles