Bitmain's Texas dream shattered as U.S. operator terminates contract

After undergoing previous internal struggles and facing speculation of potential large-scale layoffs, Bitmain today is once again in the news for negative reasons, as it has terminated its management agreement with DMG Blockchain Solutions, the operator of a mining facility in Texas.

The Vancouver-based DMG Blockchain announced on Monday that both companies have agreed to terminate the existing agreement, which previously designated DMG as the operator of Bitmain's Texas mining farm.

A report indicated that DMG cited "failure to achieve cost and operational efficiencies" as the reason for terminating the contract, and the company stated that they will continue to explore collaboration opportunities in the future.

According to a statement from DMG Blockchain, DMG Blockchain and Bitmain will continue to collaborate on other mining facilities, including DMG's mining facility in Christina Lake, Canada, where Bitmain recently delivered 1,000 new mining rigs that are now fully operational.

Mining Giants Setting Up in Texas

Miners from around the world are increasingly interested in Texas, known as the energy hub of the United States with the nation's cheapest energy prices and where 20% of the electricity comes from wind power.

According to a report, Japanese financial services company SBI Holdings and internet service provider GMO Internet recently reached an agreement to start bitcoin mining operations at the Rockdale mining facility under mining giant Northern Bitcoin AG, which will operate on behalf of the companies.

Earlier reports also mentioned that U.S. startup Layer1, supported by Digital Currency Group, raised $50 million to challenge the Chinese mining industry and gradually dilute China's dominant position.

Further Reading

• Regulatory Attitudes Towards Cryptocurrency Mining in Various Countries, from Strict China to Unregulated Czech Republic
• UK Mining Company Joins Bitcoin Mining Arms Race, Challenging China's Leading Position

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