Greenville To Open $10Million Data Center For Mining Of Cryptocurrency

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For the last some years, cryptocurrencies like bitcoin have grown in popularity, and now the same has become a worldwide phenomenon as millions of people are buying and selling them.  Greenville-based startup Tresis Mining is going to look to capitalize on the growing market and wants to invest about $10 million in the cryptocurrency data center.

Greenville is located in a 25,000 square foot warehouse off Pelham Road, which centers the house South Carolina’s largest cryptocurrency mining farm. As per David Pence, who is the managing director and the co-founder of Treis said, the company is planning to invest $2 million in capital improvements for next three years.

According to the Pence, he said, “The process of confirming financial transactions over the internet is going to change the way countless industries operate over the next ten years. We are here as a company to facilitate that transition.” This will be not like fiat currency or printed money or any other type of cryptocurrencies, but this system will be maintained with the help of a decentralized network of the specialized computers. These computers are present all around the world which confirm the cryptocurrency transactions and add them to public ledger whose other name is “Blockchain.”

David Pence, co-founder and managing director of Treis Mining. Photo by Will Crooks.

To add a transaction, the specialized computers which are known as microprocessors are usually required to “Mine” for new cryptocurrency coins by competing against each other to solve particular mathematical problems. The computer which will solve the first mathematical problems, then it can collect the transaction fees from coin holders and payment processors.  Michael Bolick, who is the managing director and co-founder of Tresis said, “We verify a transaction, and it is added to the blockchain. We are compensated in the particular cryptocurrency or coin upon which the transaction was processed.”

Also Read: Google Bans Chrome Mining Extensions By Going To Cryptojacking

The cryptocurrencies are designed in such a way that it has a finite limit on the number of units which can be generated. The bitcoin network has set a limit of about 21 million coins, and miners have discovered and distributed the same which is about 17 million coins since 2009. The rest 4 million is now very different to find due to increase in difficult calculations which are required to mine cryptocurrencies, as said by Pence.

The rewards for the bitcoin mining halves are roughly every four years. An example can explain this, when bitcoin was created, the reward for the successful mining was 50 coins. The same reward now stands at 12.5 coins, and soon it will be going to 6.25. As the reward is becoming small and small, this will increase the value of the Bitcoin that are mined.  Now more computing power miners manage to accumulate .and more chances are there to solve the calculations that are required to verify the cryptocurrency transactions. For this reason, miners have begun to use Application Specific Integrated Circuits (ASIC) rigs to solve the problems.

Treis has already mined about 300 ASIC rigs of bitcoin, lite coin, and other cryptocurrencies. This microprocessor required some extraordinary amounts of computing power and electricity to run a highly sophisticated algorithm to verify the transactions. Treis already planned to invest $8 million in more than 4,000 ASIC rigs for next two years, as said by Bolick.  But, miners can earn their profit when their hardware and electricity costs to mine one unit are less than the price of one unit.

Treis Mining uses a variety of ASIC rigs to verify cryptocurrency transactions. That includes the Antminer D3, which is capable of mining Dash, an open source peer-to-peer cryptocurrency. Photo by Will Crooks.

In the year 2013, The United States Treasury Department has made legal convertible to decentralize the virtual currency. This allows purchasing the same as an investment like gold or any other goods and services. The value of bitcoin is usually determined from the people by looking how many people are buying it and using it. The current value if one bitcoin is $9,395 and there are about 1,400 cryptocurrencies whose worth is now said to be $300 billion.

Pence who is the founder of Greenville-based Acumen IT, have given thousands of hours of research, and he started to mine for Ethereum, which is the second most popular cryptocurrency. After that, he decided to expand his new venture and outfit to about 1,500 square foot building behind Acumen with about 240 graphics processing units. After some time, he added 300 units more to the warehouse space and started to research on ASIC rigs to mine other cryptocurrencies.

Also Read: Everything You Need To Know About Bitcoin Mining

At this time, Pence had got the idea of launching a mining company to Bolick, who is the president of Greenville-based Selah Partners. Bolick agreed to join Pence and recruited Senter Smith to handle the buying and selling of cryptocurrencies.

This trio has officially launched Treis in December. As per Bolick, “The skill and experience set combination of our three partners enables Treis to be highly effective. Duke Power’s stable and affordable power is also a clear differentiator globally.” Bolick says that it will be fully operational and will require 12.5 megawatts of power and it will use approx. 1,600 watts per hour.

Pictured from left to right: Michael Bolick, David Pence, and Senter Smith. Photo by Will Crooks.

A study which is published in Crescent Electric Supply Company revealed that the Antminer S9 which is one of the advanced ASIC units would require 451.91 days to mine one Bitcoin and it will use 14641.884 Kilowatts. To make a profit, Treis is not going to plan to sell a share of the coins, but it is going to install a 250-ton trade chiller with ventilation to keep its rigs from overheating. The company also plans to add additional monitors to the analysis center.

According to some estimates, the cryptocurrency industry will worth $5 trillion by 2022. In the first week of December 2017, IOC had raised about #1.38 billion in the fourth quarter. Cboe Global Market offers about $18,850 on the first day of trading.  In the three months which was ended on March 31st, Bitcoin fell from $13,412.44 to $6,928.85 which is about 48 percent decline, as per Industry Website CoinDesk. Ethereum experienced a 47.7 percent decline in price in the first quarter of 2018 to $394.65 from $755.76.

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