Wednesday, December 8

Neighbors or rivals? two big Bitcoin mining majors battle for the same territory


Bitdeer and Riot Blockchain, two large Bitcoin mining companies, now share the same territory. Both are tenants of a property that was once occupied by the aluminum manufacturer Alcoa in the city of Rockdale, state of Texas in the United States.

Are they just neighbors or are these companies fighting for dominance in the region? It is a question that anyone could ask. But curiously one of these companies is derived from the Chinese digital mining giant, Bitmain, while the other is one of the largest publicly traded mining companies in the United States. So it seems clear that rivalry may already be something that their teams carry in their veins.

The two companies found in Rockdale the ideal place for the development of their activities. Nails Favorable conditions for digital mining that do not appear to be available in many places on the planet, such as crypto-friendly politicians, previously abandoned industrial infrastructure ready for reuse, and the ability to connect to the area’s electrical grid. This without stopping considering the large tracts of land available in case one wants to continue growing.

The Electric Reliability Council of Texas, or ERCOT, which operates the state’s grid, is a wholesale power market. In this way, customers can choose between several providers, which is a good thing for miners as it generally translates to lower fees.

Texas: a rich territory for Bitcoin mining

So Bitdeer and Riot Blockchain have not only selected the energy provider that best suits their budgets, but they also have enough energy capacity to operate their large mining centers.

Now, its mining centers they are taking advantage of the energy that was being wasted after Alcoa, the world’s largest aluminum plant, closed its operations in 2008, as reported the CNBC medium.

A Bitdeer employee says the company is expanding rapidly in Texas, although little is known about how its mining operations run or how many employees it has.

However, residents of the area identify Bitdeer as the David of the battle against Goliath. Surely it will be because of that, without much effort, the one who appeared to be the weakest ended up defeating the giant. Although in this hash battle, little is known before things end up happening.

For its part, Riot Blockchain began building its Texas facilities in January 2020 and five months later began mining bitcoin. They estimate that the first day they had 300% more capacity than Bitdeer, as it took them longer to connect all their equipment.

Whinstone, the Riot Blockchain subsidiary in Texas, is testing immersion equipment cooling on a large scale. Source: Twitter.

Riot Blockchain estimates that, at its current capacity, it is producing more than 500 bitcoins per month and claims to have around 100,000 ASIC equipment at its Rockdale operations center, although the farm is still expanding.

In addition, in two new buildings, Riot Blockchain tests the refrigeration of its equipment by immersion on a large scale and in them it waits host approximately 46,000 S19-series Antminer ASICs.

As reported by CriptoNoticias recently, Riot Blockchain quadrupled its production in September 2021, when they managed to mine 406 BTC. This represents a 346% increase compared to what was registered in the same period of 2020, when only 91 BTC were mined.

Meanwhile, it remains to be seen which of these two neighboring companies will win in this battle. It will be then when it will be known which of the two represents David and which one Goliath.



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