A Hong Kong company is jointly developing a cryptocurrency-mining operation in Akron with executives from a North Canton, Ohio-based software company.
Called Viking Data Centers, the joint venture between Bit Mining Ltd. of Hong Kong and DAS Factory LLC of North Canton could eventually have access to electric power capacity of up to 150 megawatts. That's how crypto-miners identify the size of their operations.
"This is not a small operation," said Jessica Gritzan, controller for DAS Factory.
"To put that into perspective, if you talk to someone at FirstEnergy, that's like two to three times their biggest single client now," Gritzan said.
FirstEnergy spokesman Mark Durbin said the Customer Accounts group at the Akron-based utility's Ohio Edison unit has been working with Viking Data Centers for several months "to be sure our system can accommodate the additional electric load."
"The Viking location has its own substation and is served by a 138-kilovolt transmission line," Durbin said.
China's ban on cryptocurrency mining and trading took effect in September, causing a “great mining migration” to countries such as the United States, especially to Texas, CNBC reported at the time.
In November, Viking will upgrade some of its equipment and install new metering equipment that will provide additional electric load by the end of the year, FirstEnergy's Durbin said.
In addition, FirstEnergy’s Transmission Planning and Protection group is conducting a load study to determine what other equipment would be needed if Viking wants to use more electricity in the future and what a realistic timeline would be for installation, he said.
Bit Mining (NYSE: BTCM) plans to invest $23.1 million in the local operation in five phases to be completed by March 2022.
While announcing an additional investment for Phases 4 and 5 this month, the Hong Kong investor said it intends to devote more resources than initially expected to developing its Ohio mining site "in light of its better cost control and operational efficiency."
Bit Mining also said it had terminated its Texas cryptocurrency mining data center cooperation with Dory Creek LLC and will limit power capacity at its Kazakhstan cryptocurrency mining data center to 40 megawatts "to optimize the cost-effectiveness of its data center deployment."
By March, Bit Mining expects its cryptocurrency mining machines will have access to a total power capacity of up to 190 megawatts, according to a company press release.
"The progress made to date with our global expansion strategy has been very encouraging," said Xianfeng Yang, CEO of Bit Mining, in the release.
"Our multi-site approach and geographic diversification has provided us with greater flexibility to shift resources and capitalize on regions with more favorable market dynamics, and over time, generate greater returns for stakeholders," Yang said.
"We will continue to execute on our plan, investing in technology, innovation and high-quality mining resources around the world while building a strong foundation across the cryptocurrency ecosystem," he said.
