Compute North, one of the largest bitcoin mining companies in North America with mining operations in Big Spring, Texas; Kearney, Nebraska; and North Sioux City, South Dakota, is taking a giant step forward with a new partnership with financial services company Foundry Digital, a subsidiary of Digital Currency Group based in Rochester, New York.
As part of the partnership, Foundry will supply 14,000 new Whatsminer M30S mining rigs from MicroBT to be housed in Compute North’s North American colocation facilities. Compute North will provide 47 megawatts of power for these systems from the first quarter of this year. The aim is to provide a way for more North American companies to invest in bitcoin mining.
“After the first batch of purchased devices goes online, most of the devices will be available for purchase,” said a press release shared with Bitcoin Magazine. “Investors can either buy the operating equipment directly from Compute North or fund it through Foundry with a down payment at a fraction of the equipment cost and get the mining equipment up and running almost immediately in the Compute North enterprise classes.”
As the price of Bitcoin continues to hit an all-time high, ASIC foundries and device makers are under pressure to meet demand from both newly interested customers and older mining companies who need to upgrade to stay competitive. The estimated waiting times for new mining equipment are at least six months. Leading manufacturers like Bitmain were sold out by August 2021.
This partnership could help interested parties realize profits from Bitcoin mining more quickly.
“Investors from public companies to family offices and more are perking up realizing that there is money to be made in digital currencies,” said Dave Perrill, CEO of Compute North Bitcoin Magazine. “It was a smaller asset class, but it’s still gaining momentum as they see an opportunity to diversify some of their assets into this alternative investment strategy.”
The new face of mining in North America
The Compute North and Foundry partnership is part of a growing trend in Bitcoin mining, particularly in North America.
Finance and advisory firms like Foundry, BitOoda, and Galaxy Digital are becoming key players in helping institutions finance, stake out, and operate new mining sites.
Mining also comes under the jurisdiction of larger institutions, as institutional investors also become key players in larger and more demanding mining operations.
“Another driver of cryptocurrency diversification is the result of recent economic challenges and election results,” said Perrill. “After Biden wins the election and has his economic team assembled, the Federal Reserve will continue to print more money to stimulate the economy and keep his election promise. Rising inflation will further accelerate the dollar’s decline and encourage smart money to switch to digital currencies. “
Foundry and MicroBT
In September 2020, Foundry negotiated a partnership with device manufacturer MicroBT to give North American institutional buyers priority access to new M30S once they rolled off the production line. (MicroBT is gaining traction as a leading ASIC manufacturer, although Beijing-based Bitmain is still the leading manufacturer of mining equipment CoinDeskMicroBT sold 600,000 Whatsminer units valued at more than $ 500 million in 2019.)
As part of its partnership with Foundry, MicroBT opened a store in a country in Southeast Asia to act as a supplier and bypass the 25 percent US tariff on equipment imported from China. Bitmain also avoids US tariffs by using a manufacturing facility in Malaysia.