Core Scientific, a US-based blockchain firm, has confirmed that it signed a deal to purchase Bitcoin mining machines from Bitmain. The company decided to acquire the equipment after noting that the American mining interest is going up.
This American blockchain hosting provider signed the deal that involved the acquisition of next-generation Bitcoin (BTC) mining machines from the Chinese mining hardware producer, Bitmain. The deal features 17,000 S19 Antminers and Core Scientific says that it is buying the miners for its clients and its in-house use.
That will represent the biggest number of S19 machines bought by one blockchain hosting firm. The president and CEO of Core Scientific who is also the former COO of Microsoft, Kevin Turner, 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%.”
This deal happens as Texas has begun attracting several mining facilities.
In October 2019, Bitmain launched the biggest bitcoin mining facility in Rockdale, Texas. This January, reports emerged that two Japanese blockchain-related companies, SBI and GMO, signed an agreement with Whinstone, a Northern Bitcoin AG subsidiary, to process crypto transactions in Rockdale.
Growing Interest In North America
While speaking to reporters, Russell Cann, Chief Customer Service Officer of Core Scientific, said that there is growing interest in growing hash rate through North American mining operations and explained the reason:
“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.”
Based on Cann’s statement, the regulations implemented on bitcoin mining in many other jurisdictions have been “flip-flopped”. That inconsistency has created uncertainty for mining investors. On the contrary, hosting these mining facilities in North America is highly beneficial due to the:
“The stability of the power system as well as the regulatory environment around land ownership.”
Additionally, he stated that the recent collapse of energy pricing makes the North American region more attractive:
“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.”
It does not mean that investors are shunning other mining operations in countries like China. Cann suggested that investors are seeking to diversify their investments worldwide.