Bitmain, one of the world’s largest bitcoin miners, has eyes set on the U.S. market. As part of its global expansion plan, they have already received the green light for U.S. authorities to launch. It says it will be one of the largest cryptocurrency mining operations in the world.
Bitmain U.S. Expansion
Expansion into the U.S. does not come as a surprise. The company needs to diversify its streams of revenue due to uncertainty in China. Carrying out mining operations on a global scale allows the company to reduce reliance on a given market.
Bitmain is currently operating two mining farms, but has plans to launch more facilities across the U.S. The two new facilities should be up and running mid-year. The company plans to invest $100 million in launching of the new mining facilities. However, it is yet to detail the total number of facilities it’s eyeing in the country.
Expansion into the U.S. is also driven by popular cryptocurrencies like Bitcoin (BTC) and Litecoin (LTC) having experienced growth and adoption in recent years. This growth has made mining highly lucrative.
The U.S. is the second largest market after China when it comes to cryptocurrencies. This makes it an essential market as Bitmain looks to shore up its bottom line. The company’s earnings have been growing at an impressive rate, having topped highs of $2.3 billion last year. However, a good chunk of the profits came from operations in China, something that Bitmain plans to change through global expansion.
Expansion into the U.S. won’t be an easy task given that operating costs could eat a good chunk of the company’s returns. Bitcoin mining is a power intensive operation, and unless the company can gain incentives on power, or launch facilities in areas with low power costs, then it could struggle to achieve the desired returns.
The company is however not concerned by the amount of created costs with the move into the U.S. According to the company’s co-founder, Wu Jihan, Bitmain’s involvement in the U.S. mining market could play a key role in fueling competition, which could lead to low mining costs.
Bitmain is not the only company to have set its eye on the U.S. market. Canaan, which is planning a $1 billion IPO in Hong Kong, could also look to expand its footprint abroad.