Bitmain Set to Add 56K Bitcoin Mining Rigs in Georgia State
Via a tripartite deal with ISW Holdings and Bit5ive, the two companies are set to house Bitmain’s AntMiners via a deal financed over the course of five years.
Blockworks exclusive Art by Axel Rangel
key takeaways
- The deal is expected to generate $10 million per month in revenue for ISW Holdings when services are running at full capacity
- The cost of the entire rollout will total $62 million for ISW Holdings, according to the company’s announcement
The state of Georgia is about to see a big increase in bitcoin mining capacity as ISW Holdings and Bit5ive announced Tuesday they will be adding 56,000 bitcoin miners from Bitmain to their farms.
Via a tripartite deal with ISW Holdings and Bit5ive, the two companies are set to house Bitmain’s AntMiners via a deal financed over the course of five years. The deal is priced at $62 million, and ISW holdings has already paid $6 million.
The cost of the entire rollout will total $62 million, however ISW Holdings has already paid $6 million of that sum.
According to ISW Holdings, all 56,000 miners are scheduled to be fully hooked up and operating by October 2022.
“Looking ahead, our hosting service revenues will be stable and substantial, and capable of strong growth. And our mining revenues will fluctuate with prices in the cryptocurrency space,” said Alonzo Pierce, president and chairman of ISW Holdings. “That will give us a strong foundation and enormous growth with a significant non-volatile component.”
Georgia is making a name for itself when it comes to bitcoin mining thanks to the state’s abundance of nuclear power.
CleanSpark, a publicly-traded bitcoin mining company, purchased its second data center in the state, acquiring the seven acre location for roughly $6.6 million in early-August. Later in the month, bitcoin mining firm Mawson Infrastructure Group announced plans to expand proprietary mining capacity by up to 300 megawatts (MW) at their flagship mining facility in Sandersville, Georgia.
“Georgia has a lot of nuclear power, nuclear power is emission free, it’s safe, and it’s a fantastic source of power,” Mawson Infrastructure Group CEO Liam Wilson said in a recent interview. “We didn’t want to be causing any damage to the environment, so that’s why we chose Georgia.”
As more miners begin the long process of migrating to North America, hashrates aren’t likely to decline anytime soon.
Co-founder of bitcoin mining firm Luxor Nick Hansen told Blockworks that he anticipates a huge hashrate jump early next year due to continued capacity shifting to Canada and the US and thus a surplus in hashing availability.
“We have seen large miners coming to North America in droves,” Hansen said. “This has caused hosting space to come at a large premium; relocating miners are so desperate they’re willing to pay [capital expenditures to] build out [and] accelerate their deployment schedules.”
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