China based Bitcoin mining giant Bitmain is probably looking to expand into other territories, mainly United States. The location may be Port of Walla Walla in Washington, according to a latest news report published by local media outlet Union-Bulletin. Certainly not some good news for Chinese regulators.
So far this information is based only on report of Union-Bulletin alone as no official announcement has been done by the company itself. The article from Chinese publication said that a company named Ant Creek is setting the shop for Bitmain in United States. Online registration data reveals that Ant Creek was incorporated last year in Washington by Bitmain co-founder Jihan Wu as its sole director. Since then that company has been working with port authorities to set up the base for Bitmain in USA. The information has come out now only, but the work had started long ago.
According to Port officials Port of Walla Walla will start leasing land to Ant Creek from 2019 and company will be allowed to lease up to 40 acres of land. The lease can bring in $7 million to $10 million of investment and 15-20 full time jobs to the port.
Mr. Patrick Reay, the Executive Director of Port of Walla Walla, also revealed to Union-Bulletin that his port officials have been working with Ant Creek for last six months to set up the Bitcoin mining facility. He also said they’re not concerned about the electricity requirements of Ant Creek as they’re not electric purveyor.
If this deal goes through, the lease price will be $4,166 plus state leasehold tax of $535. The land that will be leased to Ant Creek is known as “Kelly Property”.
Bitmain Profits At Record Highs, But Regulatory Hurdles Remain
Bitmain is currently sitting at a huge pile of cash. Company’s profits of $4 billion last year were record high, and they rivaled the $3 billion profit of Graphics card giant NVIDIA. But at the same time regulatory climate of China is not looking too good for its business. The communist country has launched a crackdown on cryptocurrencies in the recent months, post which Bitmain had set up a subsidiary in Switzerland as well. The company is reportedly planning to go global so regulatory mess of one country can not threaten its entire business.