According to a press release, Chinese holding company Wuhan General Group, Inc. has begun negotiations to transform a US Department of Defense facility into a Crypto Mining Farm.
However, according to the press release, in the case of successful trading, the company will receive final delivery of the facility by the end of October or in the coming months.
According to the information available, the Wuhan General Group plans to benefit from the low prices of electricity in the United States, cold climate, and high-speed Internet access, which is decisive for mining activities.
The 55,000-square-foot data center with more than 3 MW of power fuels up to 1,300 mining machines, including 12,000 after upgrading to 30 MW by 2019. According to business estimates, the crypto mining industry would produce about $3.5 Million, with 1,300 initial mining machines per month.
CEO of the Wuhan General Group, Ramy Kamaneh said, “We have been planning to carry out this operation for the last three months, but we prefer to take a back foot on the grounds of bearish cryptocurrency to evaluate our strategy.
The decision to wait for market stability was good. Shareholders and that the market has reached its peak and the plunging market is gaining again.”
In May, Australian start-up IoT blockchain and mining equipment distributor, Royalti Blockchain Group unveiled their joint project to turn a disused power plant into a “Blockchain application complex. With the supply from the neighboring Hunter Energy Power Station, the plant will be at a low power price for the project.
Some American states are known for their low energy costs, making it a destination for mining companies. In July, New York state regulators approved a new electricity pricing system for crypto-miners, permitting them to finish contracts.
a Chinese holding company called Wuhan General Group is in negotiations to convert a data center of the U.S. Department of Defense into a cryptocurrency mining farm. The data center is located in Nevada and has a capacity of 3MW. Wuhan General Group plans to install up to 1,300 mining machines in the data center, which could generate up to $3.5 million in revenue per month.
The deal is still in the early stages, and it is not clear if it will be finalized. However, if it is, it would be the first time that a U.S. government data center into a cryptocurrency mining farm.
There are a number of reasons why Wuhan General Group might in this deal. First, the U.S. has some of the lowest electricity rates in the world, which would make it a cost-effective place to mine cryptocurrency. Second, the data center is located in a cool climate, which is also ideal for mining cryptocurrency. Third, the data center has a high-speed internet connection, which is essential for Crypto Mining Farm.
The deal has raised some concerns about national security. Some experts worry that if a foreign company controls a U.S. government data center, it could steal sensitive information. However, Wuhan General Group has said that it will not use the data center for any other purpose than Crypto Mining Farm.
The deal is still in the early stages, so it is too early to say what the implications will be. However, it is a sign of the growing interest in cryptocurrency mining, and it raises important questions about national security.
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