Many companies have shown an interest in Bitcoin mining, albeit setting up an operation requires a lot of time, money, and careful planning. MGT Capital Investments will run their large-scale Bitcoin mining operation out of Washington state. All of the electricity comes in the form of hydropower, reducing the associated costs by a significant margin.
MGT Petahash Bitcoin Mining
Keeping the electricity cost as low as possible is always a good thing when it comes to Bitcoin mining. MGT Capital Investments secured a deal in central Washington state to use hydropower as a source of electricity. The company plans to have two petahash of Bitcoin mining power at their disposal by August 1st.
If all things go to plan, and the business is indeed profitable, the company will continue to expand its capacity to 10 petahash in the future. MGT has a clear plan to become one of the major Bitcoin mining enterprises in the world. This news comes at an interesting time as well, since the Bitcoin halving is almost upon us.
This decision did not come out of the blue either, as MGT has been conducting operational tests in the past few months. Optimizing the production software and gaining valuable experience were the two primary objectives of these tests. Bitcoin mining is a matter of efficiency and scraping out every piece of profit possible
It is interesting to note MGT is led by John McAfee. His company has been focusing on the blockchain side of things over the past few months, but their solution requires dedicated ASIC hardware. Mining computers are ideally suited to serve this dual purpose, and they allow the company to recoup their initial investment over time as well.
There is also a growing demand for Bitcoin transaction processing power. With the upcoming Bitcoin halving, it is possible some of the miners will halt their operations, depending on the price. MGT would fill that gap if this were to be the case. If not, there will be more competition on the network, which is not a bad thing either.
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