Investment conglomerate Digital Currency Group (DCG) reported on Thursday about a new project, with which it intends to accelerate Bitcoin mining operations in the United States. To achieve its purposes, it has allocated an investment of 100 million dollars that will be managed by Foundry, the new subsidiary in which it has been working since last year.
According to the bitcoin mining map of the University of Cambridge, the United States records a monthly average of 5.29% of the hash power of the network that is produced in the world. However, at DCG they believe that the time has come for North America to regain a considerable part of the dominance established by China in the mining industry.
At the helm of the project will be Mike Colyer, as the CEO of Foundry, who points out that part of his task will be to bring more transparency and trust to the mining industry. He adds that the objective is not for the United States to have a dominant position, but for the network to spread throughout the world. That is why the motto of the company is “to promote a decentralized infrastructure”.
Staking refers to the process by which a user acquires and blocks a certain amount of tokens in a PoS network to validate transactions and receive rewards. With Foundry, DCG now operates four subsidiaries, including Genesis, CoinDesk, and Grayscale Investments. The latter has increased its possession of Bitcoin by 60,000 coins in the last 100 days, which is equivalent to about 33% of all coins mined in that period.
Digital Currency Group enters the Bitcoin mining battle
Access to cheap electricity will be decisive in Foundry’s plans, so its operations will begin in places with affordable and abundant energy, such as Georgia, Kentucky, North Carolina, and upstate New York. Its sites also include British Columbia and Quebec in Canada, two provinces with enormous hydroelectric capacity, as Fortune points out.
Although it seems counterintuitive, given that China may be a strategic competitor, Foundry is counting on Bitmain and other Chinese companies to supply mining equipment. Regarding this aspect, Barry Silbert, Founder, and CEO of DCG told the aforementioned media that he does not rule out that, in a short time, US companies will begin to manufacture mining equipment.
If anything, Bitmain Marketing Director Su Ke said he is satisfied with the partnership: “Through Foundry’s work and the financial support of our end customers, we have been able to ship a significant number of machines to the US. This year ”.
While it is true that with Foundry, DCG wants to enter a growing industry to make money, the competition in the world of bitcoin mining is fierce. In addition to China, countries like Kazakhstan are also focused on bitcoin mining. The country seems to have put its efforts into leading the industry.
In China, on the other hand, the main cryptocurrency mining areas would be demanding the cleaning of mining businesses. As CriptoNoticias reported last June in Yunnan, the dismantling of 57 “big data” projects was demanded. Meanwhile, last week in Inner Mongolia the government suspended subsidized electricity to 21 cryptocurrency mining farms.
By: Jenson Nuñez.
