Bitmain Gains Approval To Launch Cryptocurrency Mining Operation In The U.S
Chinese cryptocurrency mining firm Bitmain has been given the green light to launch a cryptocurrency mining operation in the U.S, particularly in Washington State.
The approval marks a key step forward for the Chinese cryptocurrency mining company and it is the result of a unanimous decision by the Port of Walla Walla which is the economic development agency of Walla Walla County. The approval will allow Bitmain’s Ant Creek subsidiary to lease about 10 acres on which it will set up the crypto mining facility. Additionally, the company will be provided with the option of purchasing the 10 acres after a period of one year. There was an option for the purchase of an extra 30 acres but the option was stripped from the agreement.
A local publication revealed that Ant Creek will pay roughly $4,700 per month in rent if it agrees to the terms of the deal. The residents of Walla Walla have aired out their concerns about the massive amounts of electricity that the company will be draining from the community. There are also concerns that it might cause the price of electricity to go up. Robb Lincoln, a resident of Walla Walla County stated in an interview that one of the reasons why the company has not received a warm welcome in the community is the fact that it creates wealth that does not trickle down to the society.
Bitmain has been targeting Walla Walla because it is one of the places that have the lowest electricity rates in North America. This has attracted many cryptocurrency mining companies to the region. Many cryptocurrency mining companies have set up shop in Quebec, Canada, thus causing an overwhelming demand for power. This has been a growing source of concern for the local government which has, in turn, prompted the government to instruct Quebec’s utility company to start denying service applications by cryptocurrency mining companies. This will allow the company to cope with the overwhelming demand for power.
To put into perspective just how much cryptocurrency mining companies consume, cryptocurrency mining giant Bitfarm has fourmining operations in Quebec. They collectively consume 27.5 megawatts of electricity that are already installed. It is also working on installing three more facilities that will consume more than 100 megawatts. Despite the complaints by locals, these mining companies pay tax to the government and as such, they contribute to the welfare of the community. Some lawmakers have previously argued that cryptocurrency mining uses too much energy yet there are no tangible products.