Chinese crypto mining giant Bitmain said it will be sending 56,000 Antminers to the state of Georgia in the United States.
The company said it made a deal with Nevada-based tech firm ISW Holdings and crypto mining datacenter Bit5ive.
Bit5ive is charged for bringing power, hosting services, project management services, and expertise to the table. ISW Holdings will, on the other hand, provide funding, expertise, hosting and mining services, access to power and to public market investors.
The total cost of the hardware deployment stands at approximately $62 million and is expected to generate monthly revenue of $10 million when running at full capacity.
According to the official report, at ISW’s POD CITY facility in Georgia, the Antminers will be operational with 20 megawatts of power by October of this year. ISW revealed its plans for the facility to run at 200 megawatts by October 2022.
The Company is currently running 700 miners, representing a mix of Bitmain Antminer S17’s, BitMain S19 95TH/ s’s, and Canaan Avalons. Those miners are running in POD5 units in Stronghold, Pennsylvania, at a site managed by Bit5ive.
Mining revenues to fluctuate with crypto prices
Alonzo Pierce, president and chairman of ISW Holdings, said that the nature of their business changed significantly last summer when the company partnered with Bit5ive and began designing state-of-the-art mining pods.
“Now, just a bit over a year later, we are on the verge of becoming one of the top players in the cryptocurrency world after bringing Bitmain to the table in a deal that will see all parties unlock significant value. Looking ahead, our hosting service revenues will be stable and substantial, and capable of strong growth,” he said.
Pierce added that he expects their mining revenues to fluctuate with prices in the cryptocurrency space.
“That will give us a strong foundation and enormous growth with a significant non-volatile component. This should put us in a position to meet requirements to migrate shares to a major national listed exchange in due course. We have a number of additional catalysts in the works as well, and I look forward to providing more insights in the very near future,” he noted.
This operational state can produce annual revenues of $4.8 million to $6 million given the current three-month trailing average pricing for major cryptocurrency markets.
The deal is one of many moves this summer by Chinese miners to move out of China, with North America being a particularly attractive destination.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.