Core Scientific to Set up BTC Mining Center With 17K Rigs Bought from Bitmain

Core Scientific, US based blockchain hosting facilitator, has inked an agreement to purchase next generation Bitcoin (BTC) mining systems from top Chinese mining hardware producer Bitmain.

Core Scientific will buy over 17,000 S19 Antminers from Bitmain for the sake of customers and also for itself. Notably, it will be the biggest number of S19 machines bought by a single blockchain related firm, as per Core Scientific.

Kevin Turner, President and CEO of Core Scientific and the ex-COO of Microsoft stated “Core Scientific has received and begun testing the first of Bitmain’s newest ASIC miners, and has seen material success in increasing existing hash rate to achieve a 110 TH/s ± 3%.”

The agreement has come about at a time when Texas has begun luring several mining related firms. Last October, Bitmain established “the world’s largest” centre for Bitcoin mining in Rockdale, Texas.

Likewise, in January, SBI and GMO, two Japanese blockchain associated enterprises, inked a contract with Northern Bitcoin AG associate Whinstone to handle crypto dealings at their Rockdale facility.

Russell Cann, Chief Customer Service Officer of Core Scientific, pointed out the rising interest in increasing hash rate through North American mining centers and detailed the basis:

“Our view is that this rise in interest and increase in capital allocation and investment can be attributed to the growing acceptance of crypto and/or digital assets as an investment asset class as well as the favorable investing characteristics of North America; specifically, the stable geopolitical and regulatory environment, suitable climatic conditions and multiple energy sources present.”

As per Cann, historically, mining related regulations have been varying continuously in other jurisdictions, causing uncertainty in mining operations. On the contrary, setting up mining center in North America is profitable because of “the stability of the power system as well as the regulatory environment around land ownership.”

Furthermore, he stated that he latest volatility in energy prices has turned North American region very attractive for miners:

“Importantly, with the collapse of energy pricing, the lower cost power areas in the US and Canada, are creating some unique project opportunities for larger-scale miners, like Core Scientific, to consider.”

Despite that, it does not imply investors are winding up other mining operations in countries such as China. Cann opined that investors across the globe are looking for opportunities to reshuffle their portfolio.