Compute North, one of the largest bitcoin mining companies in North America with mining farms in Big Spring, Texas; Kearney, Nebraska; and North Sioux City, South Dakota, is taking a giant leap forward through a new partnership with financial services provider Foundry Digital, a subsidiary of Digital Currency Group based in Rochester, New York.
Through the partnership, Foundry will deliver 14,000 new Whatsminer M30S mining rigs from MicroBT hosted in Compute North’s North American colocation facilities. Compute North will provide 47 megawatts of power to these platforms from the first quarter of this year. The goal is to provide a path for Bitcoin mining investment to more North American companies.
“After the first batch of purchased devices comes online, most devices will be for sale,” said a press release shared with Bitcoin Magazine. “Investors can purchase the working devices directly from Compute North or fund them through Foundry with a down payment at a fraction of the cost of the device, and run the mining equipment at Compute North’s business facilities almost immediately after purchase.”
As the price of bitcoin continues to hit its all-time high, there is pressure on ASIC foundries and equipment manufacturers to try to meet the demand from both newly interested customers and older mining companies who need to upgrade to remain competitive. Estimated wait times for new mining equipment are at least six months, with leading manufacturers such as Bitmain out of stock until August 2021.
This partnership could help interested parties realize profits from bitcoin mining faster.
“Investors from listed companies to family offices and more are excited to realize that there is money to be made with digital currency,” said Dave Perrill, CEO of Compute North. Bitcoin Magazine. “It has been a smaller asset class but continues to gain momentum as they see the opportunity to diversify some of their assets in this alternative investment strategy.”
The new face of mining in North America
The partnership between Compute North and Foundry is part of a growing trend in Bitcoin mining, particularly in North America.
Financial and advisory companies such as Foundry, BitOoda and Galaxy Digital are on the rise key players in helping institutions with their financing, deployment and exploitation of new mining sites.
Mining is also within the remit of larger institutions as institutional investors also become major players in larger and more sophisticated mining operations.
“Another driver for cryptocurrency diversification is a result of the recent economic challenges and election results,” said Perrill. “With Biden winning the election and his economic team together, the Federal Reserve will continue to print even more money to boost the economy and deliver on its campaign promise. Increased inflation will further accelerate the dollar’s decline, encouraging smart money to switch to digital currencies. “
Foundry and MicroBT
In September 2020 Foundry negotiated partnered with equipment manufacturer MicroBT to gain priority access for North American institutional buyers to new M30Ss as soon as they came off the production line. (MicroBT is gaining ground as a leading ASIC manufacturer, although Bitmain is still the number one mining equipment manufacturer in Beijing. CoinDesk, MicroBT sold 600,000 Whatsminer units, worth more than $ 500 million in 2019.)
As part of its partnership with Foundry, MicroBT has set up a store in a country in Southeast Asia to act as a supplier and avoid the US 25 percent tariff on equipment imported from China. Bitmain also avoids US tariffs by using a manufacturing facility in Malaysia.