Tag: Blockfi

Chinese Firm Bit Mining Invests $9M to Build 100 Megawatt Bitcoin Farm in Kazakhstan

Chinese Firm Bit Mining Invests $9M to Build 100 Megawatt Bitcoin Farm in Kazakhstan

Shenzhen-based Bit Mining is planning to construct and operate a 100 MW crypto-mining data center in Kazakhstan. The project will be implemented in partnership with two local companies that will also provide the enterprise with an array of services. The total amount of the investment will exceed $9 million.

Kazakhstan to Host New 100 MW Crypto Mining Facility
Bit Mining announced this week it has entered into a binding investment term sheet with a Kazakhstani entity. The two companies will cooperate on the construction of a new crypto mining facility in the Central Asian republic. The Chinese firm will have an 80% equity interest in the new Kazakhstan Mining Data Center, with the remaining 20% held by its local partner.

The bitcoin farm will launch with a power capacity of 20 MW and when fully operational it’s expected to reach a total capacity of 100 MW. Bit Mining said it’s going to invest 60 million Chinese yuan (around $9.33 million) into the joint project.

The Chinese company has also concluded two service agreements for its mining equipment, one of which with its main partner and a second one with another company from Kazakhstan. They will provide a range of needed services including on-site device hosting, broadband network support, security monitoring, server management, and maintenance. The agreements will come into force on July 1, 2021.

Bit Mining Expands Coin Minting Business Globally
Formerly known as 500.com, Bit Mining has embarked on a rapid expansion in the crypto mining industry since earlier this year and its activities now cover cryptocurrency mining, mining pool and data center operations. Bit Mining has so far deployed bitcoin mining devices with a maximum hash rate capacity of approximately 1,031.5 PH/s. It owns three hydroelectric data centers with a total power capacity of 435 MW.

In April, before its rebranding, the Chinese firm acquired the mining company Btc.com. It currently owns the entire mining pool business operated under Btc.com, including the domain name and the platform’s cryptocurrency wallet.

Bank of England Governor Bailey Says Cryptocurrencies Are ‘Dangerous’

Bank of England Governor Bailey Says Cryptocurrencies Are ‘Dangerous’

Known for his reluctant stance on decentralized money, the Governor of Bank of England (BOA), Andrew Bailey, has recently taken his anti-crypto rhetoric up a notch. Speaking at a meeting with lawmakers in London, Bailey stated that cryptocurrencies are “dangerous.”

Andrew Bailey Remains Sceptical About Cryptos
“Crypto-assets,” as the central bank’s official labels bitcoin and the rest, present a danger to the public, Bailey told the British Parliament’s Treasury Committee. The Governor’s statement on Monday reiterates his long-standing concern about decentralized digital currencies, Reuters noted in a report. Addressing the committee members, the head of Bank of England said:

I’m sceptical about crypto-assets, frankly, because they’re dangerous and there’s a huge enthusiasm out there.

Andrew Bailey’s latest criticism comes after previous statements revealing his negative attitude towards cryptocurrencies. The governor has in the past warned ordinary Brits they should not invest in crypto unless they are prepared to lose all their money.

The BOE chief believes digital financial assets such as bitcoin do not fulfill key functions of a standard means of payment. In early May, the banker stated that “I would only emphasize what I’ve said quite a few times in recent years. I’m afraid they have no intrinsic value,” but he also admitted that people can put “extrinsic” value on them. And in January, Bailey expressed doubts that any cryptocurrency would last.

Governor’s Report Reveals Growth and Inflation Worries
Andrew Bailey’s comments coincide with a turbulent period in the crypto space. Negative statements by other public figures, organizations, and governments have seriously affected cryptocurrency markets which have lost billions in the past days and weeks. However, the crypto-economy was doing pretty well until recently, compared to other sectors that have suffered from the Covid-19 crisis.