Mining is an integral part of a decentralized economy. Most cryptocurrencies like Bitcoin are mining-based. It is thanks to mining that the transaction is verified, confirmed and added to the blockchain. The mining protocol on the Bitcoin network is called Proof-of-Work, or “proof of work.” Miners perform work – complex computing processes and are rewarded for it. This reward depends on the total network capacity, or in other words, the network hash rate.
The big players in cryptocurrency mining are no longer enthusiasts with home farms. The mining industry has undergone very significant changes over the past couple of years. And the reason for this was the phenomenal rise in the price of Bitcoin and other cryptocurrencies. Along with the rise in the price of Bitcoin, the volume of investment in mining has also increased, and today this industry is estimated at billions of US dollars.
Today, in order to enter the cryptocurrency mining market and take top positions, you will have to literally compete with IT giants and even governments. And although Bitcoin was created decentralized, such mining monsters concentrate gigantic network resources in one hand, which contradicts the idea of decentralization. These resources are huge data centers that only mine. Such data centers are essentially giant mining farms.
Hut 8 Mining has teamed up with Bitfury to create one of the largest mining farms in North America. This farm consumes 86 Megawatts and consists of two data centers, which in turn consist of 73 blocks. This giant mining farm has attracted investments through Canadian stock exchanges.
This large mining farm continues to expand ever since. The Hut 8 Mining management plans to build new clusters of a data center for mining cryptocurrencies and reach first place in the list of the largest mining farms in the world.
At the moment, the mining farms of such a large company are located on the territory of Coinmint LLC near the city of New York. There, almost 17 thousand ASIC mining structures are used for bitcoin mining. This location was chosen for a reason, because it is in this area that electricity is the cheapest due to the fact that it is obtained from those energy sources that can be easily renewed. Most of these sources were created from those elements that do not emit any emissions into nature and therefore are also environmentally friendly.
These guys believe that Bitcoin mining will become the new property of America and therefore they are doing their best to make this idea a reality. And so far they have been quite successful.
This year, the company announced the acquisition of Whinstone U.S., which has many businesses that develop and operate in this area. They are located in an unknown state of Texas, and the company owns almost 110 acres of land, where they located three huge buildings that house their largest farms in America. Even electricity is supplied there under a special contract and therefore all the preparatory processes for them are as simple as possible.
A year ago, the heads of Whinstone were going to create the most important hosting brand in the entire country. Due to cheap electricity and the best professionals in all of America, they were able to deploy such a large bitcoin mining operation that they became almost the largest farm not only in the country, but in the entire world. Judging by how much electricity they spend, it can be understood that the production is really in full swing. A comprehensive strategy on how to spend their electricity resulted in them paying as little as 2.5 cents per kWh. Due to the fact that they have a special special response team, all farms are in total safety and therefore their extraction is safe for workers inside the premises.
Despite all their income from the main activity (Hosting), they also receive a lot of money for additional activities for their users, namely the creation of a special cooling system that exists to help miners cool their machines and farms.
This November, Marathon Digital Holdings, the mining community that dominates the Las Vegas miner niche, reported that their fall 2021 revenues grew 80 percent, which is a crazy number for a single season.
Marathon Digital is a large investor in cryptocurrency mining and crypto farms, which itself owns one of the largest mines in all of North America. Their main idea is to use the best Bitcoin mining equipment and then use it to invest in other projects and new equipment for their own farms.
For 2022, they already have a plan to buy a bunch of miners and various real estate in order to maintain the current status of the company as one of the world leaders in the crypto field;
They also have many investors themselves, and in 2021 they brought about half a million US dollars to the company, which will later be spent on the implementation of the plan next year;
Investors will be able to receive their interest from the company’s mining.
Marathon made a statement that in 2021 they mined 1,758 BTC, which is more than $ 100 million, which is the capitalization of many larger companies in terms of staff and means the result is truly amazing. They also have a separate land in North Dakota and there they are also engaged in mining and various projects about increasing the speed of mining new blocks in the blockchain.
A very funny fact is that Marathon Digital is actually registered in the US as a mining company – and therefore they are obliged to report like all similar enterprises, which hits their finances quite hard. But nevertheless, they had almost no problems associated with this topic.
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