Coinmint has revealed plans to open a massive bitcoin mining facility in upstate New York. The mining company unveiled its latest plan in a statement on June 5, 2018. The new facility is expected to provide 150 jobs within the next 18 months and will cost roughly $700 million to complete. The company becomes the latest to invest in the mining boom in North America despite the decline in the price of bitcoin since reaching stellar heights in mid-December 2017.
Coinmint’s Bitcoin Mining Facility
The new Coinmint bitcoin mining facility will be situated in a premise that was previously an aluminum smelting plant operated by Alcoa who shut down the factory nearly four years ago. According to CNBC, Coinmint has signed a ten year lease agreement after a series of serious negotiations with Alcoa which also include an option to renew the contract.
The outfit has already begun operations and is expected to be at full capacity in the next 12 months. The new 435-Megawatt Coinmint complex is touted as being the largest bitcoin mining facility in the world. In what is an ambitious financial outlay, the company is committing over $700 million in investments on the facility.
Since the conclusion of the negotiations, the price of bitcoin has dipped by 30 percent. In fact, bitcoin’s year-to-date performance is a 50 percent decline showing the volatile nature of even the number one cryptocurrency on the market. However, Coinmint is not deterred in its efforts to develop the complex.
Commenting on the project, Coinmint CTO Prieur Leary said:
“As long as the bitcoin network exists we anticipate mining to be profitable. We’ve developed a process to get an edge in the market.”
Bitcoin Mining Is Expanding Outside of China
Before 2018, China was the capital of bitcoin mining. However, a raft of unfriendly cryptocurrency regulations has made miners seek out other countries. Places in North America and Northern Europe have become prime destinations for many operations. Cheap electricity and the cold climate in these areas are ideal for mining operations.
The Coinmint facility is located in Massena, New York near to the Canadian border. Moreover, the town’s power comes from clean sources like wind and hydro. According to Leary, each mining rig generates about 1,400 watts, the equivalent of a hairdryer. By locating the facility in a relatively frosty part of New York, the company plans to enjoy significant savings on cooling costs.
Speaking of the prospects of having a mega bitcoin mining facility in Massena, Steve O’Shaughnessy, the Town Supervisor, said:
“We in Massena would like to welcome Coinmint to our town. The thought of 150 jobs and revitalization of the Alcoa East Facility is exciting and what we have been working for. We are ready to provide any assistance we can to move this project to its full potential.”