MGT Capital, a significant Bitcoin mining company, is revising its plans for expansion. During the past year, the company made a decision to expand to Sweden, which offered it is likely that low-cost electricity and inexpensive cooling. The corporate expected the fact that would provide progress over its original Washington location.
Now, that expansion plan has fallen through. The organization has begun shipping out its mining rigs and has now cancelled its contracts with Swedish businesses. MGT Capital will instead establish a new mining facility in Nova scotia.
Mining Costs For the Rise
Bitcoin mining has become increasingly challenging to profit from, for the reason that difficulty of finding a?new block continually rises. MGT Capital notes of the fact that Bitcoin network recently grown by using a factor of six, which contains driven up mining difficulty into the same degree. Additionally, the consideration in ASIC miners has increased the money necessary for Bitcoin mining hardware.
According to MGT Capital, Bitcoin mining required just twelve Bitmain S9 miners not too long ago, whereas it now requires about 80 of the people mining rigs. .
Although high mining costs did burden the agency, other costs provider for the Swedish facility’s failure: a new hosting vendor and engineering errors. Evidently the costs of maintenance and management nearly outweighed the many benefits of Bitcoin mining:
“Since the facility may possibly produce Bitcoin, managing total of 50 Ph/s for all miners, the prices of rectifying vendor errors has required large outlays of capital with uncertain returns.”
Location, Location, Location
MGT Capital will continue to operate its original facility in Central Washington. The manufacturer is also seeking another location during the U.S. or Canada, where it believes that operating costs shall be “materially lower plus more ! stable when compared with Sweden”.
Washington has become a hotspot for crypto mining resulting from low electricity rates. Meanwhile, a Canadian company has long been building a stainless steel substation specifically dedicated to crypto mining.
However, many locales are taking stances against the practice: individual counties in Washington are banning new mining facilities, and Quebec is following suit.
The current mining hotspots might remain viable facility locations for a short time. But with many complicating factors, a totally new mining refuge may in the future rise to prominence.