Wuhan General Group has announced it is discussing possibilities of redesigning a U.S. data center into a cryptocurrency mining facility. The company wants to create a center that will meet all security and energy specifications during mining besides showcasing new standards in safety and stability in cryptocurrency mining.
US Defence Data Center to be used for Crypto Mining
The statement from Wuhan General Group (China), Inc. said negotiations with the United States Department of Defense were ongoing regarding the project. The proposed site is a 55,000 square feet facility with 3 MW of power and has the potential of accommodating at least 1,300 machines that can mine Bitcoin, Zcash and other cryptocurrencies.
According to the press release published on Tuesday, September 11, 2018, once acquired, the group will upgrade the facility to 30 MW in the year 2019 so it’s able to accommodate over 12,000 crypto mining machines. Once the company finishes the negotiations, they expect to deliver the first batch of Asicminers in late October as the rest follow in the coming months. With the initial 1300 mining machines, Wuhan Group expects to rake in at least $3.5 million monthly based on the current crypto prices. Ramy Kemaneh, the Chief Executive Officer of the group said:
“We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy. The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market. We acted in the best interests of the Company and its shareholders and firmly believe that the market has bottomed and a bullish market is starting again.”
North America attracts Miners
North America has become the go-to place for cryptocurrency mining companies not only because of the favorable cold weather but the cheap electricity.
With the Chinese government tightening the noose on cryptocurrencies, Wuhan Group Inc. is taking advantage of affordable energy costs available in some U.S. States that have become attractive to cryptocurrency mining firms.
The State of New York approved a new energy scheme for cryptocurrency miners last July that allows them to get negotiated contracts. The Massena Municipal Utility has also introduced a special rate for cryptocurrency miners, which are considered on an individual basis in a bid to shield other utility customers from the higher rates.
United States authorities also seem to have a soft spot for the growth of budding business within its borders.