Core Scientific Signs Deal with Bitmain for 17k Mining Rigs

US-based Core Scientific recently signed a deal with Bitmain, the larger crypto mining hardware producer in the world, to get 17,000 S19 Antminers.

Next-generation Bitcoin miners

Core Scientific will buy more than 17,000 S19 Antminers from Bitmain. The mining rigs would be used on behalf of the company’s clients. However, some would be used for their own efforts as well. The company said that this is the single largest order of S19 mining rigs by a blockchain hosting company to Bitmain.

President and CEO of Core Scientific, Kevin Turner said, “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%.” Turner was formerly the COO of tech giant Microsoft.

Texas becomes the hotbed of mining

American companies are showing heightened interest in cryptocurrency mining and Texas has quickly become a hotspot for a number of mining facilities. Bitmain itself announced the world’s largest Bitcoin mining facility in Rockdale, Texas last year. Two Japanese blockchain giants- GMO and SBI also signed an agreement with Whinstone to process crypto transactions using their Rockdale-based subsidiary in January. Whinstone is a subsidiary of Northern Bitcoin AG.

Core Scientific’s Chief Customer Service Officer Russell Cann said that there is a rising interest in growing the hash rate using North American operations. He noted that the growing acceptance of cryptocurrencies, as well as more favorable investment trends, are help increase capital allocation in this sector. The region has a stable regulatory and geopolitical environment, there are many energy sources and the climatic conditions are also suitable.

He specified that there is more uncertainty for miners in other jurisdictions but in North America, the power system is stable. There is a better regulatory environment over land ownership as well. The most recent collapse of energy prices in the region also makes it an attractive investment choice.

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