The recent move from China to crack down on cryptocurrency mining caused Bit Digital Inc to change its plan. Instead, the Nasdaq listed company intensified its efforts of acquiring over 20,000 computer systems from another country.
The New York-based company has the machines in its core operations. By plugging high-powered computer systems into electrical energy sources of low costs, the machines will generate cash. In addition, such plugging enables the functioning of these machines in unlocking Bitcoin through mathematical issues.
Related Reading | Congress Introduced 18 Bills Regarding Cryptocurrency Assets in 2021
The mining process has evolved from the usual one-person operation with a PC which can take a decade. The operation is now a huge business that requires massive electrical energy and some computer systems.
Cryptocurrency Mining Firms To Experience Hazards In Relocating
Bit Digital and other cryptocurrency mining companies now have some challenges in moving their machines. This movement is from a primitive stage that uses two-thirds of the global energy to mine Bitcoin. When shaken, the machines tend to break.
Thus, the process of their international packing and delivery becomes quite herculean. Moreover, going for a single new PC is about $12,000.
Different companies decide whether or not to move their computer systems by sea or air. Their decision will take into cognizance the transportation size and the applicable fees.
Bit Digital disclosed that it has 9,484 mining machines, representing one-third of China’s Sichuan province systems. The company said that this figure represented its value as of June 30, 2021.
According to Samir Tabar, Bit Digital’s Chief Technical officer, the firm sought the assistance of huge global logistics in moving the cryptocurrency mining systems.
He said they believed that the computer systems would get to North America by early September. After that, the company plans to deploy the machines to locations in Georgia, Nebraska, Canada, and Texas.
The complete transferring process has an estimated cost of millions of dollars. This high cost has some contributory factors.
Related Reading | What Are The Possibilities Of U.S. Getting The Long Awaited Bitcoin ETF?
The recent rise in the price of oil in the last few months has a part to play. Also, there are the bottleneck-challenges in shipping due to the COVID-19 pandemic. This has brought a hike in the freight costs for items.
Moreover, there is a 25% tariff on computers moving from China to the United States. Therefore, besides devising the method for packing and shipping the machines, companies are looking for structures to move them.
The cryptocurrency market is on an upward trajectory as per the daily chart | Source: Crypto Total Market Cap on TradingView.com
Featured image from Pixabay, and chart from TradingView.com