Bitcoin mining giant Bitmain has separated from its management partner DMG Blockchain Solution. The joint operation of the “largest mining farm in the world” was not profitable.
The Texas town of Rockdale is considered an acute hotspot for Bitcoin mining plants. Northern Bitcoin AG has already attracted the 5,500 inhabitant town with cheap electricity from wind energy and an open attitude towards the blockchain industry. The German company plans to build the largest facility to “mine” new bitcoins to date.
Bitmain separates from DMG Blockchain Solutions
The Chinese company Bitmain, market leader in the Bitcoin Mining segment, had already settled in Rockdale – and (still) runs the largest farm in the world there. Previously, DMG Blockchain Solutions was responsible for the management and operation of the plant.
However, as DMG announced on January 6, the two companies separated by mutual agreement:
“DMG and Bitmain have terminated the existing management agreement by mutual agreement because the cost and operational efficiency has not turned out as planned. DMG and Bitmain continue to explore opportunities for collaboration, including the DMG facility in Christina Lake and new locations of common interest . “
As the company also announces, DMG has received the order to build 1,000 new Bitcoin mining devices for a new customer in the USA. Bitmain had already delivered this to the customer in December 2019, and the installation has now been successfully completed. According to the DMG, the installed devices should consume a total of 1.5 megawatts of energy. DMG COO Sheldon Bennett says the company is targeting industrial customers:
“We look forward to working with this new customer and are confident that he will be one of many that we will add in 2020. DMG has chosen to focus on attracting large hosting customers since profitable crypto mining is a function of cost efficiency and our mining facility is well suited for industrial miners. “
Regardless, DMG and Bitmain are still looking for ways to work together.
Bitcoin mining: Halving is coming
Halving in Bitcoin mining is expected in May this year. The reward for miners is halved from the current 12.5 BTC to 6.25 BTC. Investors expect an increase in the Bitcoin price from this event, after all the supply of new Bitcoin units will be reduced.