Crypto mining wars in Texas

What comes to mind when you think about crypto mining giants fighting with each other? Many analysts in the past framed the fight as an ongoing race between two major superpowers, the United States and China. Even with the recent China crackdown, you would probably still imagine an international battle over mining the world’s most traded digital asset.

You probably wouldn’t expect two crypto mining giants to be warring with each other in a small town in Texas, but… this battle began late in 2021. Rockdale is a small town an hour north of Austin, and it’s only home to 5,600 people. Both Bitdeer and Riot Blockchain have Bitcoin mining operations in the city. Since then crypto mining in Texas has gone nuclear.

What’s the appeal of Rockdale?

Believe it or not, Rockdale was once home to one of the largest aluminum manufacturers in the country: Alcoa. Unfortunately, layoffs devastated the small town, and much of Rockdale’s economy shifted to coal. Now, Bitcoin is offering a chance for the city to revitalize itself economically. Both Bitdeer and Whinstone (a Riot Blockchain subsidiary) operations take place in the former Alcoa facility.

Rockdale has made it clear that it wants to attract business. The city previously threw in its hat as a wild card for Amazon’s headquarters, and the mayor believes that it’s this kind of ambition that may have eventually attracted these companies. John King, the mayor of Rockdale, also believes that more businesses will pop up thanks to the presence of both Bitdeer and Riot.

The fact that Bitcoin miners can simply move into a facility and begin operating is a huge advantage, and Alcoa does provide that opportunity. Of course, both companies are in Texas because it offers both low energy costs and relaxed regulations. The Texas Governor has also publicly said that he wants Texas to be a world leader in both “Bitcoin and blockchain,” and crypto-friendly politicians always help to seal the deal.

What’s the story with Bitdeer?

Several years ago, you could rarely go a day without seeing cryptocurrency headlines about Bitmain. Bitmain was once such a crypto mining giant that many believed the company held an unfair monopoly over the market, undermining the principle of decentralization that so many crypto investors and enthusiasts hold dear. Over time, it was clear that Bitmain was losing its grip over the Bitcoin mining industry.

Jihan Wu, the founder and “face” of Bitmain, and a crypto billionaire, ended up stepping down from Bitmain in 2021. There has been an ongoing power struggle within the crypto mining company for several years now. Wu is now the chairman of Bitdeer, a spin-off Bitmain company with operations in the U.S. and Norway.

Bitdeer Group is based in Singapore in order to avoid Chinese crackdowns and regulations. The company now markets itself as a “digital asset mining service provider.” Bitdeer recently announced support for Filecoin, a “decentralized storage network.”

What’s the story with Riot?

Riot Blockchain is a crypto mining company based in Castle Rock, Colorado. The company was founded in 2017, but made headlines for shifting from veterinary products to crypto. The price of Riot Blockchain shares increased significantly, but many questioned the legitimacy of the company. The company trades under the ticker symbol $RIOT.

What does Riot Blockchain have to do with Rockdale, Texas? The answer to that question is that Riot acquired Whinstone earlier this year. Whinstone was already operating the largest Bitcoin mining facility in the country, and the company still hopes to expand.

Riot Blockchain is often considered one of the pure blockchain stocks, and is one of the largest U.S. crypto mining companies. The company recently announced that it mined 464 Bitcoin in October 2021, a 433% increase over the previous year.

What does the future hold for crypto mining in Texas?

With the cryptocurrency markets stronger than ever, many crypto investors are wondering which cities and states will attract the most crypto entrepreneurs and blockchain-based startups. Many believe that the city could be Miami, while the New York City Mayor Eric Adams also clearly wants in on the action, recently announcing that he would take his first three paychecks in Bitcoin.

It’s unclear whether Texas will soon be the “cryptocurrency capital” of the country. The fact that Rockdale is home to two major crypto mining companies is certainly a good sign. They aren’t the only Bitcoin mining companies hoping to enter the Lone Star State, either. Argo Blockchain, a crypto mining firm listed on the London Stock Exchange, is currently trying to raise over $57 million for a West Texas facility.