Bitmain has reported new plans of putting up fresh 200,000 units of crypto mining machines in China. These new equipment are expected to greatly benefit from the reduced cost of hydroelectric energy that the country has. This is according to an official report that was made on the 21st of March 2019.
Making Deal With The Local Mining Companies
Bitmain is one of the leading crypto mining companies that has its base in China. It has been in the industry for a considerable period of time. In this new report, 200,000 units of crypto mining machines will be put up by this leading crypto mining farm. This project will fully take the advantage of low-cost hydroelectric power that China usually experiences, especially during the summer.
For sometime now, the Southwestern part of China has been experiencing huge downfall of rains. The mining equipment that Bitmain plans to install are estimated at a total cost of around $80 million to $100 million. It has also been reported that Bitmain has entered into new negotiations with Chinese local mining farms. These are the farms that would assist in hosting the mining machines. So the deal will be done in collaboration with the local Chinese crypto mining stables.
Bitmain is expected to deploy its new mining equipment such as the AntMiner S15 and the AntMiner S11. This will be done alongside some other models such as the AntMiner S9i/j.
Close Of Business In Israel
As this crypto mining giant plans to put up new business units in China, things aren’t going well in Israel. Bitmain has opted to shut down its main development center that had its base in Israel. This has come after local Israeli employees were fired in last December. The company reached this decision after realizing that the business wasn’t doing so well.
In January, the company opted to reduce its operations in Netherlands. According to Gadi Glikberg, the crypto market has undergone a serious shake up in the last couple of months. Gadi worked as the head of Bitmain’s Israeli development center. He is also the company’s Vice President in charge of global sales and marketing. This official linked the recent closure of the Israeli office to the shake up that has been recently witnessed in the market.
Refocusing To Meet The Current Market Demands
The activities in the crypto market has prompted Bitmain to restructure its operations in various countries. Bitmain, however, has other reasons for its business closure in Netherlands. It has stated that it was part of its long term plan of saving the costs.
There are other companies that have suffered as a result of the shake up that has been in the market. The reduced profitability of the leading crypto coin, BTC has been one of the leading cause.
As at now, Bitcoin Core is trading at a price of $4,000. It was also reported that Bitmain suspended its operations in Rockdale, in the state of Texas, US. This occurred in the month of January.