Northern Bitcoin AG merges with Whinstone US, plans mining facility in Texas

Frankfurt, Germany-based Northern Bitcoin AG announced yesterday in a press release that it is partnering with its US-based competitor Whinstone US, Inc to build a a new Bitcoin mining facility in Texas. The companies say that this facility will be “by far the largest Bitcoin Mining Facility worldwide”…

The company says (full press release embedded below) that it plans to build the massive facility over the course of three phases. The first phase has apparently already commenced as of a few weeks ago:

A few weeks ago, the company started building its latest site in Texas. On an area of 100 acres (equivalent to around 57 soccer fields), the largest data center in North America and the largest Bitcoin mining facility in the world are built in three phases with local construction partners.

The company’s schedule for the rollout of the facility is insanely fast, with the first phase set to bring 300 megawatts of power online within a few short months from now:

With the completion of the first construction phase planned for the first quarter of 2020, the company will already have over 300 megawatts of capacity and will rank number one worldwide. The total capacity of one gigawatt is expected to be available in the fourth quarter of 2020.

Why is Whinstone building a Bitcoin mining facility in Texas?

The US-based Whinstone already has a facility in Louisiana, which is a mystery enough to me, but my big question is this: What about Texas makes it an attractive destination for Bitcoin mining? These two newly-merged companies are not the first mining organizations with sights set on Texas.

As Decrypt notes, Bitmain, a much more established name in the Bitcoin mining space, recently announced a huge mining farm in Texas as well. Just weeks ago, actually…

And if all that sounds vaguely familiar, it’s likely because the world’s leading Bitcoin mining firm—the China-based Bitmain—just weeks ago announced it was finally ready to open up its very own Texas mining farm in Rockdale.

Which begs the question above. Aren’t dry, year-round cool climates the best for Bitcoin (or any cryptocurrency) mining operation? One of the most challenging aspects of running mining systems profitably is cooling, and Texas’ year-round heat likely won’t do either of these companies any favors in that regard.

The only reasons I can think that Texas would be attractive for mining operations such as these would be a good mix of affordable (but not cheap) land and green, renewable energy. West Texas is known for its wind farms, so perhaps there is a connection there. I’m lost on Bitmain’s decision to go with Rockdale… it’s very southern, hot climate, not-so-flat land that probably wasn’t cheap.

Where will the Northern/Whinstone Bitcoin facility be in Texas?

And so the second question I have regarding this particular Northern Bitcoin AG and Whinstone deal is where exactly in Texas this new facility will be. Apparently, ground has already been broken. Wherever it is, the company is clearly fast-tracking its development and already has major customers on board…

The total capacity of one gigawatt is expected to be available in the fourth quarter of 2020. The first customers of the new site are two stock-listed corporations that will use a significant portion of the capacity for Bitcoin mining.

Also… who are those two “stock-listed” corporations that will be taking advantage of this new gigawatt of Bitcoin mining muscle? Let us know in the comments what you think about these developments, particularly the new Northern Bitcoin AG and Whinstone facility that is to be located in who-knows-where, Texas…

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FRANKFURT, GERMANY / ACCESSWIRE / November 18, 2019 / Northern Bitcoin AG (XETRA:NB2, ISIN: DE000A0SMU87) has entered into a merger agreement with its US competitor Whinstone US, Inc. The company already successfully operates its own Bitcoin Mining Site in the US state of Louisiana and is currently building by far the largest Bitcoin Mining Facility worldwide with a capacity of one gigawatt on an area of over 100 acres in Texas.

The Whinstone Group and its management team have a successful track record in the blockchain industry since 2014 and have established and operated their own mining facilities in the Netherlands, Sweden and the USA. A few weeks ago, the company started building its latest site in Texas. On an area of 100 acres (equivalent to around 57 soccer fields), the largest data center in North America and the largest Bitcoin mining facility in the world are built in three phases with local construction partners. With the completion of the first construction phase planned for the first quarter of 2020, the company will already have over 300 megawatts of capacity and will rank number one worldwide. The total capacity of one gigawatt is expected to be available in the fourth quarter of 2020. The first customers of the new site are two stock-listed corporations that will use a significant portion of the capacity for Bitcoin mining. In addition to its highly specific focus on blockchain applications such as Bitcoin mining, the infrastructure of the largest data center – after completion – in the USA can also be used for video rendering and artificial intelligence applications in the future.

“With stock-listed Northern Bitcoin AG, we have found the ideal partner to position our successful business development on the capital market from now on. The joint company has the immediate potential to shape the future course of the global mining industry,” explains Aroosh Thillainathan, Co-Founder and Managing Director of Whinstone US.

“With this merger, we are catapulting ourselves faster than originally planned to the top of the world in Bitcoin mining. Whinstone’s team has done a great job over the past few years and is proving its leadership in the blockchain industry by building the world’s largest mining facility,” said Mathis Schultz, CEO of Northern Bitcoin AG. “Together, we have a dominant leadership position in this fast-growing industry and are well-positioned to benefit significantly from the future development of blockchain technology.”

By completing the transaction at the beginning of 2020, the joint venture will establish itself as a global leader in Bitcoin mining. It is intended that parts of the experienced Whinstone management will complement the management board of Northern Bitcoin AG at short notice.

Northern Bitcoin AG, based in Frankfurt, started in 2018 as a sustainable Bitcoin Miner and is recording a rapid growth thanks to the strong global distribution of Bitcoin and its blockchain. The Company among other things operates a mining site based on renewable energy sources in Norway and benefits from the rapid adaptation of Bitcoin as “digital gold” and new means of payment. With the offer of its own wallet, the Company becomes the operator of a 360-degree Bitcoin ecosystem.

About Northern Bitcoin:

Northern Bitcoin AG is a technology company focused on the Bitcoin blockchain. It is challenging the status quo of Bitcoin mining and redefining it. As a pioneer, it provides Bitcoin and blockchain technology with a sustainable infrastructure. To this end, it operates its own state-of-the-art mining hardware based on renewable energy sources under extremely cost-efficient and secure conditions as well as a self-developed mining pool. The company is headquartered in Frankfurt am Main. Further information under www.northernbitcoin.com.

Disclaimer:

This press release represents neither an offer to sell nor a request to submit an offer to purchase Northern Bitcoin AG securities; nor does it constitute a securities prospectus for Northern Bitcoin AG. The information contained in this press release is not intended to serve as a basis for financial, legal, tax-related or other business decisions. Investment or other decisions should not be taken solely on the basis of this press release. As in all business and investment matters, please seek qualified professional advice. This press release and the information it contains are not intended for direct or indirect communication to or within the United States of America, Canada, Australia or Japan.

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