The race to mine Bitcoin continues to heat up as two more companies spend 150 million on buying miners

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2021-03-22 00:18:01

The two miners – The9 Limited and Blockcap – have now purchased a total of 36,000 Bitcoin mining equipment worth more than $ 150 million from Bitmain.

Bitcoin mining difficulty has just had a record increase of the past 2 years, the pressure to discharge coins from miners is increasing

Specifically, The9 Limited, a Chinese gaming company listed on the Nasdaq, purchased 24,000 Antminer S19j machines through NBTC Limited. Total cost is estimated at about 120 million USD. An S19j miner, Bitmain’s newest Bitcoin mining device, costs around $ 5,000.

Blockcap North America, on the other hand, bought 12,000 Antminer S19s, according to an announcement shared with press. Total cost of purchase is estimated at more than 33 million USD, with the price of an S19 about 2,800 USD.

This is a massive additional purchase from Blockcap, the Bitcoin mining company founded by Darin Feinstein, a veteran analyst with Core Scientific. Last month, the company also bought 10,000 S19 miners in an effort to double its hashrate.

With the latest purchase, Blockcap’s total miners that will be deployed in Q4, 2021 will increase to more than 40,000. And at that point its hashrate was expected to surpass 3.5 exahash per second (EH / s), more than three times the current hashrate of 0.95 EH / s.

Image of Bitmain's most advanced Bitcoin mining equipment at the moment
Image of Bitmain’s most advanced Bitcoin mining equipment at the moment

Feinstein said Blockcap aims to make the US a world leader in the Bitcoin mining race. Currently, China has the largest hasharate in the world, accounting for 65% of the total market, while the US has a market share of only about 7%, according to the company. Cambridge Finance.

The9 Limited’s equipment is scheduled for delivery starting November 2021 and upon completion of the deliveries the company is expected to have an additional hashrate of approximately 2,160 petahash per second (PH / S). .

Industry players are actively collecting both new and old Bitcoin miners amid the recent sharp rise in Bitcoin prices. Earlier this week, the Chinese company 500.com acquired old miners, including the S9 generation, to scale up its bitcoin mining operations. Publicly listed Bitcoin miner Bitfarms also recently ordered 48,000 new machines from MicroBT to expand its hashrate.

So far, more than ten companies have announced bulk pre-orders of bitcoin miners estimated at over $ 500 million.

CHK aggregated

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