Chinese holding company Wuhan General Group (China), Inc. has entered negotiations to transform a U.S. Defense Department facility into a crypto mining farm, the company announced in a September 11, 2018, press release.
Setting new Standards in Cryptocurrency Mining
A Nevada investment company focused in cryptocurrency mining operations announced that it’s currently negotiating a redesign of a U.S. Defense Department data center to transform it into a cryptocurrency mining facility.
According to the company’s Globe Newswire press release, in case of a successful outcome to the negotiation, the company will receive the first order of rigs in late October 2018, with more to come in the following months. Wuhan General Group cited low electricity rates, a cold climate, and high-speed Internet as being crucial factors in choosing Northern America for their newest mining operation.
The press release stated that the 55,000 square foot data center with more than three MW of power can accommodate up to 1,300 mining machines, with 12,000 to be added after its upgrade to a 30MW facility in 2019.
The company estimates that the mining farm would produce around $3.5 million based on the first 1,300 mining machines per month. While no further details about the operation were shared, the company said that they will release more information with the public in the months to come.
The Bearish Market Didn’t Stop Wuhan
According to Ramy Kamaneh, the CEO at Wuhan, the company postponed the launch of the project for three months to reassess their strategy due to to the declining market. He 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.”
The company also stated that it plans on adhering to strict safety and security standards while providing optimal cryptocurrency mining performance.
With the latest government crackdowns on the crypto industry in China, it’s no wonder why more and more Chinese companies are looking to transfer their business to the U.S.
However, despite the overwhelmingly positive sentiment towards cryptocurrencies, some areas in the U.S. are looking to introduce more regulations to the industry. Wuhan, on the other hand, states that this project has the potential to increase in value and also create opportunities for innovation within the sector.