Two cryptocurrency mining companies have recently announced their intentions to spend a combined $261 million on new server farms in the U.S., according to media reports.
Power Block Coin LLC said in February that it plans to build a $251 million complex outside of Butte, Montana, to mine cryptocurrencies.
As initially reported by News BTC, Power Block’s Butte facility will be built over 24 months and will consume about 125 megawatts per year to mine Bitcoin and other cryptocurrencies. Local government officials have already greenlighted the project, which Power Block estimates will create about 50 new jobs in the area.
Power Block is a new business division of Blue Castle Holdings, an energy infrastructure developer based in Utah. In late 2017, Blue Castle announced its intention to make 500 megawatts available for cryptocurrency mining in scattered locations throughout the U.S.
“Earlier this year, we started receiving inquiries from blockchain miners interested in low cost electrical capacity,” said Blue Castle CEO Aaron Tilton in a November statement. “Not just any electrical capacity, all electricity is not created equal. Blockchain mining power has to be globally cost competitive, readily available and quickly scalable. It also has to have the right power load profile, accompanied with dependable existing infrastructure, at the appropriate locations. It was a great fit for us, we are already doing this type of development.”
Butte, Montana, sports temperate-to-cold temperatures for much of the year, an environmental factor that has drawn other mining ventures to similar locales in Iceland and Sweden. The average yearly high is just 54 degrees F, while the average yearly low is about 26 degrees F.
“We are currently selling the right kind of low cost installed capacity to miners via bi-lateral contracts,” Tilton added. “Therefore, a good portion of the power can be put to use before our peer-to-peer, spot market Power Block Exchange platform goes live in the 2nd quarter of 2018. 500MWe (megawatts) is roughly enough power to supply the global Ethereum network or about one fifth of the global Bitcoin network.”
The second project is a much smaller $10 million operation in Greenville, South Carolina, headed up by startup company Treis Mining.
Treis will set up its flagship facility in a 25,000-square-foot warehouse, which will see an additional $2 million in planned capital investments and upgrades over the next two to three years.
“The process of confirming financial transactions over the internet is going to change the way countless industries operate over the next 10 years or so,” co-founder David Pence told the Upstate Business Journal. “We’re here as a company to facilitate that transition.”
Pence has registered his mining operation with the U.S. Securities and Exchange Commission. In the filing, Pence declined to disclose his estimated annual revenue and requested a 506(b) exemption. That particular exemption prevents Treis from advertising its securities offering, which the company classifies as a debt offering.
When the facility comes online, it will consume about 12.5 megawatts per year. Each ASIC rig in the facility will consume roughly 1,600 watts per hour.