Bitcoin

Bitcoin Mining Company is Turning Smelter into a Technological Facility

Bitmain Technologies Ltd. will be launching a new mining center and data center in Rockdale, Milam County, Texas. The facility will be located about 50 miles northeast of Rockdale, a population of about 5,000 people. According to the news report, the workplace of Bitmain will also comprise of a portion of operation’s site of former Alcoa Rockdale, the company that is ranked as sixth largest aluminium producer of the world..

Bitmain is expected to maintain and complete all the tasks related to facility and setup by early 2019. The company suggests that by establishing its new mining and data center in Texas, it is working towards expansion in northern regions of the U.S. The company stated its strategy behind opening mining center by stating:

The Milam County blockchain data center and cryptocurrency mining facility represents a key component of Bitmain’s strategic investment and expansion plans within North America.

The bold step taken with the help of Alcoa Inc. to innovate the former aluminium smelter with a technological facility has also received support from the government. Bitmain is exempted from tax for 10 years so it can easily manage the facility construction. Regarding this, the news stated:

An incentive plan that includes a tax abatement phased in over 10 years was approved by the Milam County Industrial Development Corp. and the Milam County Commissioners Court.

The relieve by government is provided due to several factors. Firstly establishing the facility required at least $500 million investment in a time period stretching to 7 years so it is logically a sound step taken by government to exempt taxation procedure for company for more than 7 years. In this way, Bitmain is eased and comforted to manage its investment capital without worrying for money expenditure in taxation. Secondly, the opening of facility impacts economy of Milam County to great extents, government helped Bitmain that will in return help Rockdale locals as almost 400 job openings are expected in first two years by this initiative. Company will be requiring technicians, managers, engineers and researchers almost in very field so locals can readily avail these employment opportunities to benefit themselves and region’s economy. The company announced job openings in following statement:

The new jobs will be full-time, fully benefited and will include positions in engineering and management, as well as opportunities for data center technicians.

Richard E. Williams Jr., Milam County Industrial Development Corporation president, shared his views on the benefits brought by Bitmain. He explained the prospective facility to play vital role in county’s unemployment. He said:

The 400 new jobs in addition to an estimated 137 spin-off jobs could make a major dent in Milam County’s relatively high unemployment rate, while salaries and benefits are above average for Central Texas.

Bitmain was founded in 2013 as a mining firm with a headquarter located in Beijing. At the moment it is of $12 billion worth and is expected to gain massive IPO in Hong Kong in future. It is known as the creator of  Antminer cryptocurrency mining computer that is acquired in mining Bitcoin and altcoins. Apart from mining activities, Bitmain has been keen in the field of Artificial Intelligence as well. Almost 40 percent of the company’s revenue came through AI in last five years. But besides all this, Jeff Stearns, executive vice president and director of operations for Bitmain, North America, is pretty satisfied with investing in facility in North of America to make it a proper mining center and data center. He said:

Bitmain is truly honored to announce this news and is excited to work with local partners, government and stakeholders in realizing this vision, throughout the initial set-up phase, operations and beyond.

Apart from Bitmain, bitcoin miners such as Coinmint and Hut 8 have also looked forward to launch new mining centers. Hut 8, a Canadian company has launched worlds largest publicly traded operator. This was confirmed by Andrew Kiguel, Hut 8 president and CEO, who claimed:

With 66.7 MW of aggregate operating capacity, we believe we are the largest cryptocurrency miner in Canada and the largest publicly-traded cryptocurrency miner by operating capacity in the world.

And apart from this, Coinmint’s initiative to transform 1300 acres Alcoa aluminium smelting plant has received  support from Massena Town Supervisor, Steve O’Shaughnessy who welcomed Coinmint by saying:

The thought of 150 jobs and revitalization of the Alcoa East Facility is exciting and what we have been working for…We are ready to provide any assistance we can to move this project to its full potential.

It can be observed that Bitcoin’s success means great load at back ends and this has caused miners to move to places with low electricity rates or more beneficial future prospective. That’s explains the trend of many companies who nowadays are launching new mining centers in different areas.

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Email: fatir@blockpublisher.com or contact the editor at editor.opinions@blockpublisher.com

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