SBI and GMO to join Rockdale’s Bitcoin Mining Facility

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Whinstone Inc., the operator of a mining facility that is presently under construction in Rockdale, Texas, is reportedly in talks with SBI Holdings and GMO, two of Japan’s leading companies. 

Currently being built on over 40 hectares of land, the Bitcoin (BTC) mining hub is set to become the largest mining site in the world. But while the mining hub wouldn’t open until 2020, interested corporations targeting to lease mining capacity had already come forward. 

According to Bloomberg, internet provider GMO and financial services firm SBI Holdings had expressed their intent to process crypto transactions at the new mining hub. Sources familiar with the matter revealed to the publication that relevant parties had already agreed in principle. However, neither of the two companies have confirmed the report. 

Notably, Whinstone is a subsidiary of Northern Bitcoin AG, a tech company based in Frankfurt, Germany. The company has been in the industry since 2014, operating mining facilities located throughout the US, Netherlands, and Sweden. In 2019, intending to establish the world’s largest Bitcoin mining facility and data center, Whinstone decided to merge with Northern Bitcoin AG. 

A new Bitcoin mining hub with unprecedented scale 

According to reports, Northern Bitcoin AG’s new mining hub would debut in the market with 300 megawatts as initial capacity. However, updated reports confirmed that developers expect it to hit 1 gigawatt before the end of this year. 

If this expectation would be met, the mining hub in Rockdale would be able to facilitate crypto transactions whose accumulated volume is three times higher than the mining facility owned and operated by Bitmain. Currently, this Chinese company operates the world’s largest crypto mining facility, which is also located in Rockdale. 

Notably, Bitmain’s mining hub had been constructed on Alcoa, an area which served as the center of aluminum dealings in the 1950s. According to Bloomberg’s senior commodity strategist, Mike McGlone, since the mining facility rolled out operations last October, crypto-miners have been flocking to Rockdale. He emphasized that miners are particularly drawn to the area’s renewable and affordable energy sources. 

As per the BloombergNEF 2019 energy report, electricity generated from wind in Texas accounts for 20%. The figure is expected to outperform coal for the first time this 2020. 

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