Things were looking bright for Bitmain up until 2018, reportedly having posted first-half profits $743 million, and became arguably the largest manufacturer of application-specific integrated circuit (ASIC) chips.
So much that there was talk of expanding the mining farm operation outside of China, and even plans to go public on the Hong Kong Stock Exchange.
But more recently, it shows signs of break down within the company, Bitmain has terminated its management agreement with Texas-based mining farm operator, DMG Blockchain.
The Chinese cryptocurrency equipment manufacturer Bitmain has first announced that it would set up a data centre in the economically-deprived city in August 2018; but those plans might now be scrapped, according to an announcement by DMG Blockchain Solutions.
DMG had been chosen, in October of last year, to manage the Rockdale facility for Bitmain. However, the companies have determined that it would not be in their best interest to continue, as, according to DMG’s announcement, the project has not materialized “cost and operational efficiencies” that would make it worthwhile. However, it adds that the two entities will continue to explore other partnership options.
Miners around the world are showing an increased interest in Texas, where abundant natural resources generate cheap electricity. Early this week, Bloomberg reported that Japanese financial services firm SBI Holdings and internet service provider GMO internet reached a deal to start bitcoin mining at a Rockdale, Texas-based facility run by Northern Bitcoin AG. Digital Currency Group-backed Layer1 has also raised $50 million to manufacture its own mining chips and run its own electricity substations in Texas.
Meanwhile, DMG Blockchain and Bitmain will continue their collaboration for other mining sites, including DMG’s Christina Lake mining facility, per a statement from DMG Blockchain.