BY CNA team - August 7, 2018
Bitmain to build US$500mil data centre in Texas
Beijing-based mining rig manufacturer Bitmain is making a US$500mil investment over seven years into a blockchain data centre in Rockdale, Texas, a city 96 km northeast of the state capital of Austin.
The company says in a press release that the Rockdale facility represents a key component of its strategic investment and expansion plans in North America.
It says the facility, located within a section of the former Alcoa Rockdale Operations site, would be completed at the end of 2018 with the initial phase data centre to be operational early next year.
Bitmain, which has an estimated value of US$12bil after recently completing a funding round that raised US$400mil from a group of venture capital firms, is planning for a Hong Kong initial public offering but has not filed for a public listing yet.
Fortune magazine says in an earlier report that the bitcoin mining rig manufacturer made a profit of US$1.1bil in the first three months of the year and could earn from US$2bil to US$3bil in profit this year.
Bitmain has found itself mired in controversy in recent years due to its dominance in bitcoin mining through the control of two bitcoin mining pools – AntPool and BTC.com.
Reports from late June estimated that the company may control up to 51% of the hash rate, that is, the computing power needed to generate bitcoins, through control of the mining pools.