Bitcoin Mining Company Blockware Mining Closes $25 Million in Financing to Grow U.S. Operations

Bitcoin mining company Blockware Mining has raised $25 million in a second round of funding, bringing its total raised to $32 million.

Blockware Mining launched in 2019 with a main base of operations in Paducah, Kentucky, USA. The company is building a 30 MW facility in the area and hopes to expand to 100 MW in the future.

The company currently has 300 PH/s of mining capacity, but expects to use the new funding to purchase more hardware and reach 1 EH/s by mid-2022. To put this in perspective, this is equivalent to about 1% of Bitcoin’s current global computing power.

In a press statement, Blockware Mining CEO Michael Stoltzner said.

“The scarcity of miners has put up significant barriers to entry for companies looking to enter this business, and we have allocated significant resources to make more transactions and fund our rapid growth.”
Huge migration of computing power
The company appears to be taking full advantage of the current global bitcoin mining situation.

China’s crackdown on bitcoin mining – which has caused many miners to shut down or begin moving out of the country – has significantly reduced its contribution to bitcoin arithmetic power. This has led to a 50% drop in Bitcoin’s arithmetic power as China dominates the sector.

While bitcoin’s price drop over the past month or so has made bitcoin mining less profitable, this has been offset by the drop in arithmetic power that has made mining easier. This means there is room for existing miners to expand their operations.

This provides opportunities for countries around the world.

The United States, which already has a robust bitcoin mining scene, appears to be taking full advantage, with many mining companies expanding their operations. It could also benefit El Salvador, which is planning to tap into the geothermal energy generated by the volcano to mine bitcoin.

“Currently, only an estimated 10 percent of the world’s hash rate is generated in the United States,” Stoltzner said. “By offering low hosting rates, Blockware Mining will create a better global distribution of the Bitcoin network while making U.S. computing power more globally competitive.”

But that opportunity may not last that long. Rather than simply shutting down, Chinese miners are moving out of the country and into other low-cost jurisdictions. Chief among them is Kazakhstan – the world’s fourth-largest bitcoin mining country – which provides cheap electricity not far from China.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitcoin-mining-company-blockware-mining-closes-25-million-in-financing-to-grow-u-s-operations/
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