BIT Mining Limited (NYSE: BTCM) is the latest company to expand its U.S. operations to Ohio. The block reward mining company spends more than $12 million in Ohio to build an 85 megawatt (M.W.) mining facility.
The partnership is a joint venture between the New York Stock Exchange-listed operator and Viking Data Centers. The facility’s construction will be completed in February 2022.
The joint venture will cost BIT Mining a total of $12.14 million. In addition, Viking will receive $10.84 million in cash, while the remaining $1.3 million will be handed to the corporation in either cash or ordinary shares. The Ohio plant, completed in three phases, will be 51 percent owned by BIT Mining. The first phase is planned to be finished by October 15, with the second and third phases following on November 15 and February 15, respectively.
BIT Mining indicated in a news release that it intends to continue investing aggressively in its block reward mining business by investing in, acquiring, and developing high-quality mining resources worldwide. It has sent 1,016 mining machines to the United States. In addition, the company now owns the whole mining pool business formerly held by Bitmain founder Jihan Wu and operated under the domain BTC.com.
BIT Mining is the latest trend that has seen an increase in the number of block reward miners flocking to the United States. This expansion has been fueled by more favorable legislation in some states, low-cost electricity, and a crackdown on miners in China.
The United States is becoming a mining hub
The emergence of North America, particularly the United States, as a mining hub has two sides: one of the companies founded in the United States and have continued to grow, and the other of enterprises that have migrated to the “land of opportunity.”
Core Scientific is one of the former, with the company expanding and planning to IPO on Nasdaq this year at a valuation of $.4.3 billion.
Then some are considering moving to the United States or have already done so. According to Fred Thiel, CEO of Marathon Digital, a BTC block reward miner, the amount of mining rigs that have been kicked out of China is over 500,000. He feels they could find a home in the United States.
“500,000 formerly Chinese miner rigs are looking for homes in the U.S. If they are deployed, it would mean North America would have closer to 40% of global hashrate by the end of 2022.”