Mining Up North

The New York Power Authority has approved the allocation of 15,000 kilowatts of hydroelectric power to a new bitcoin mining venture by Coinmint, the North Country Data Center Corp (NCDC), pending the approval of a contract within a year. Coinmint, which currently operates a bitcoin mining facility in Plattsburgh, expects that the cryptocurrency market will continue to grow worldwide and thus seeks to expand its business to a second facility.

According to the proposal plan, the power allocation would support capital investment of at least $165 million and the creation of 150 new jobs in connection with the proposed project. The plan will involve renovating a former metal smelting facility in Massena, and the installation and operation of up to 180,000 specialized bitcoin mining systems within two years. Once complete and fully operational, the NCDC expects to handle 15 percent of the global cryptocurrency business.

Russian Buyers Provide Demand for Chinese Mining Equipment

South China Morning Post spent time with Alex, a 38-year-old Russian businessman visiting China to establish connections with bitcoin mining hardware retailers. The report states that Alex spent three days exploring central Shenzhen, where he compared the products offered by 30 different retailers. Alex claims to have had two or three trips to China over the last 15 years to purchase toys that he resells in Russia, however, this is the first trip that he has undertaken in order to purchase mining hardware.

Alex states that when he first entered the bitcoin mining industry he purchased 200 units in Moscow, for which he paid a 20% premium when compared to the Chinese market. He states that there is far more to consider than just the prices of the hardware he inspects, emphasizing that “It’s about how to choose a true retailer .”

For Alex, Shenzhen, in particular, offers too many potential retailers to easily choose from.
Mining Hardware Vendors Plentiful in Shenzen

South China Morning Post recounted exploring the SEG Plaza in Huaqiangbei, Shenzen – a major manufacturing hub that has comprised a Special Economic Zone since the 1980’s.

The report states that the plaza houses “vendors of mining machines scattered between the fourth and sixth floors in spaces originally occupied by sellers of computer components,” noting that “One mining shop had a Russian translation at the bottom of its ad.”

Whilst South China Morning Post article states that “Russians dominate the list of foreign customers,” it is also reported that “Indians and other Europeans” comprise a significant share of the market demand for Chinese mining hardware.

Source: Bitcoin Isle