More Bitcoin Hashrate Heading To Texas As Two Firms Establish Operations There


Texas Bitcoin mining state

America’s biggest oil producer Texas is set to become the country’s biggest Bitcoin mining producer, after two companies established operations in the state.

Nasdaq-listed Riot Blockchain purchased a mining site in Rockdale, while lesser-known Bitcoin miner Blockcap announced it would be setting up its headquarters in Austin, Texas.

The news of both Bitcoin miners setting up shop in the state solidifies Texas’ role as the Bitcoin mining hub for the US, and gradually the world.

Both Layer1 and Chinese Bitcoin mining giant Bitmain have established presence in Texas as does UK-based Argo which is looking to build a mining data center with up to 800-megawatts of electrical power in a 320-acre plot of land in West Texas.

Texas becoming Bitcoin mining center

Riot Blockchain Joining The Texas Bitcoin Mining Rush

Publicly traded Bitcoin miner Riot Blockchain is joining the Texas Bitcoin mining rush by acquiring a mining site in Rockdale, Texas for $650 million.

America’s second biggest Bitcoin miner is based in Black Rock, Colarado, but its mining data center is in Massena, New York.

However, Riot launched a pilot program in Houston, Texas to evaluate opportunities in the ERCOT energy market and test bleeding edge mining technology. So, it comes as no surprise that the Bitcoin mining firm is setting up another mining data center in the state.

Riot has acquired the Whinstone Inc. data center from Northern Data, and it says it expects it to become the biggest mining data center in the world.

The deal was a mix of cash plus Riot Blockchain stock, and Northern Data will own a 12% stake in the company through the shares.

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Blockcap Setting Up Headquarters in Austin

On April 9th, Bitcoin miner Blockcap announced it would be following other companies and setting up its headquarters in Austin, Texas.

Recently, Blockcap announced it had raised a further $38 million taking the one-year old mining firm’s capital raise to over $75 million.

Since launching, US mining venture Blockcap has already acquired 42,000 ASIC miners from Bitmain and Canaan so far, 12,000 of which are operational.

The company expects to have another 18,000 mining Bitcoin by Q4, taking tis total hashrate to 3.5 EH/s. Blockcap then intends to add 12,000 more ASIC miners by 2022, which will make it one of the country’s leading Bitcoin miners.

Former Texas governor, Rick Perry welcomed Blockcap for bringing innovation to Texas, and claimed the state was the premier location for Bitcoin mining in the US.

‘The State of Texas welcomes Blockcap and its decision to establish its headquarters in our capital, which is yet more evidence that we have become the premier location for forward-looking industries like blockchain,’ Perry explained, who said he was excited by innovative companies like Blockcap and tesla setting up in the city of Austin.

America's Oil rich state is becoming Bitcoin rich

Texas Is Steadily Becoming Bitcoin Mining Hotspot

China has long been the Bitcoin mining hotspot, but with regulatory uncertainty and an authoritarian government making it difficult for entrepreneurs, Texas is becoming more attractive to big Bitcoin mining firms.

Other governments, such as Pakistan, Iran and Ukraine are getting into the Bitcoin mining game, but with its cheap and abundant energy and favorable regulations Texas is attracting more Bitcoin miners.

China is still leading the way when it comes to Bitcoin hashrate, but the trend is obvious and Texas is building on its historical industries and slowly becoming the global epicenter for Bitcoin mining.

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