Chinese telecom giant Coolpad has announced a significant investment in Bitcoin mining rigs, earmarked for deployment across North America.
This strategic pivot follows Coolpad’s earlier initiative to invest in Bitcoin-centric enterprises, signaling robust confidence in the digital currency’s future.
Mining rigs are the workhorses of the cryptocurrency world. They perform the critical task of validating transactions and securing the blockchain network.
When it solves complex cryptographic puzzles, these rigs compete to add new blocks to the blockchain, a process that simultaneously mints new cryptocurrency units.
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Coolpad’s rigs will likely be high-powered machines, possibly using ASIC (Application-Specific Integrated Circuit) technology, renowned for its efficiency and speed in mining operations.
The news of Coolpad’s venture into Bitcoin mining was reported on June 14, 2024, with the company revealing plans to acquire 2,700 mining rigs from JingYun Intelligent Technology, a Hong Kong-based firm.
These rigs are not just a technological investment but also a geographical one, as they are set to boost Coolpad’s computing power significantly, from 873,000 TH/s to about 1,504,800 TH/s.
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North America offers many locations suitable for mining operations, with factors such as energy costs, climate, and regulatory environment playing pivotal roles. States like Texas, with its deregulated power grid and renewable energy sources, or Wyoming, known for its crypto-friendly legislation, could be potential hotspots for Coolpad’s mining rigs.
In May 2024, Coolpad made a decisive entry into the cryptocurrency sphere with a $28 million investment plan aimed at acquiring shares in various crypto asset companies listed on Nasdaq.
This marked the beginning of diversification, as the company set its sights on firms such as CleanSpark, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, and Hashdex Bitcoin Futures ETF
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