A Chinese holding company based in Nevada United States has revealed plans to redesign the U.S Defense Department facility into a crypto mining farm.
According to a public press release published on September, 11, Nevada-based investment company Wuhan General Group Inc., would be transforming the Defense facility, and making necessary upgrades and reinforcements prior to 2019.
Although the move is still in its negotiating stages, plans are already in place towards the successful outcome of the negotiation. Ongoing designs include plans to receive the first order of rigs by October, and more rigs would follow closely in the following months.
The site has been chosen because of the low electricity rates in the U.S which would significantly reduce costs. Favorable weather conditions and excellent internet speed also reportedly played a major role in the decision, as the internet is definitely crucial for crypto mining activities.
The Defense Department facility about to be obtained is reportedly more than 50,000 square foot in size and has more than 3MW of power which is capable of powering about 1300 mining machines, where about 12,000 would be added toward the scheduled upgrade against 2019. The target capacity is set to hit heights of 30MW by the beginning of next year. Initial plans and schedule of 1300 mining machines have been estimated to generate about $4 million every month of operation.
CEO of Wuhan general group, Ramy Kamaneh admitted that the consistent discouraging fall of the cryptocurrency market affected earlier plans and stalled development. He said:
“We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy. The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market. We acted in the best interests of the Company and its shareholders and firmly believe that the market has bottomed and a bullish market is starting again.”
Wuhan Group is known as a leading force in the execution of streamlined and efficient solutions for the tech industry, tackling problems and global needs. The company believes the potential project would increase in value over time, pioneering different initiatives and leading the way in the creation of new opportunities in the industry.