Blockware Solutions analyst Joe Burnett explains the two dominant approaches to Bitcoin mining. One is to run new generation ASICs in low-cost secure hosting facilities (like Blockware Solutions). The second is to use cheaper older generation mining rigs to mine wasted off-grid energy or excess sporadic on-grid energy.
Read MoreThis article showcases our top picks for the best Chicago based Mining and Mining Technologies companies. These startups and companies are taking a variety of approaches to innovating the Mining and Mining Technologies industry, but are all exceptional companies well worth a follow.
Read MoreNEW YORK, March 29, 2022 /PRNewswire/ -- Blockware Solutions (BWS), an industry leader in blockchain infrastructure and cryptocurrency mining, is excited to announce the opening of its flagship facility in Belfry, KY. The new 20-Megawatt data center will facilitate professional mining that will give individual customers total control over their own mining activities.
The data center, which has been testing with select customers since January 2022, will be one of the only locations that is built, operated, and managed for individual customers and not as just a self-mining enterprise. After working closely with the local and state government, Blockware Solutions' new location will help revitalize the Belfry community with well-paying jobs, generous benefit packages, and tap into unused electricity to ensure power is being efficiently utilized.
Read More“Kentucky is the 'perfect cocktail' for Bitcoin mining: political sustainability, low-cost energy, local economy support and a safe and cool environment.”
- Mason Jappa, CEO of Blockware Solutions
Read MoreBlockware Solutions, the privately held crypto mining and infrastructure company, has built a 20-megawatt (MW) mining facility in Belfry, Kentucky, the first of three planned sites in the region.
The data center will allow customers to co-locate their mining rigs and has been testing with select clients since January, according to a press release. The facility’s power capacity could also be expanded to as much as 75MW.
“The new 20-Megawatt data center will facilitate professional mining that will give individual customers total control over their own mining activities,” the company said in the statement.
Read MoreWarren Rogers, TechCrunch Contributor, CFO at Blockware Solutions
The crypto mining space is approaching a key inflection point. There are currently two dominant proof of work-based coins, Bitcoin and Ethereum. Bitcoin’s consensus rules are immutable and historically have not been able to be altered by some of the largest exchanges and miners in the space.
Bitcoin will remain the dominant crypto treasury asset, as it is one of the only assets that has the monetary property of immutable scarcity.
Investors looking to deploy capital into crypto mining should focus on Bitcoin, as it has no impending protocol transition and significant potential upside.
Read MoreBitcoin has been around for quite some time — long enough to have a generation that grew up hearing about it. Will Clemente is one of them. At just 19 years old, Will is someone who has already accomplished impressive things in the space, such as becoming the Lead Insights Analyst at Blockware Solutions.
Today we sat down with Will to talk a bit about his story. We also talk about bitcoin on-chain metrics and how using them will allow for a better understanding of the state of bitcoin in the market.
Read MoreOver the past year Rogers, a former venture capitalist, has been crisscrossing Appalachia, on the hunt for new bitcoin mining sites - and the power to run them.
"We own a money-printing machine," Rogers said, gazing at a tangle of power lines which descend the steep hills and connect to a pair of rusted old buildings, where his team is installing rows of Chinese-made bitcoin-mining computers.
"We're building our own Fort Knox," he told the Thomson Reuters Foundation.
When the planned construction is done, the facility will create up to three bitcoins per day - worth over $100,000, all the while sucking more power than all the houses in Belfry combined, based on estimates from Blockware Solutions.
Read More“In the mining world, the turnaround that happens in communities when a large mining farm is deployed there can change lives,” Mason Jappa, CEO of Blockware Solutions, told Blockworks. “By deploying in rural areas hit by an opioid crisis, decimated economies or low morale, a mining entity can come in and offer healthcare, retirement plans and [the] opportunity to turn a town around.”
Read MoreJoe Burnett Analyst at Blockware Solutions said, “It is difficult to determine exactly what effect specific events have on the market price of Bitcoin. There are an infinite number of market-related variables constantly changing around the world. Billions of people are experiencing these changes and events which cause each of them to buy, sell, or do nothing based on their own unique perspective.
With that said, the Russsian-Ukraine war has clearly highlighted Bitcoin’s censorship-resistant properties. For both countries, good or bad, capital can be moved and allocated to and from Bitcoin without any government, bank, or world power being able to intervene.
What is real estate in Ukraine now worth? What are Russian bonds now worth with new economic sanctions?
The world is learning that the Bitcoin network itself is outside the control of any nation-state, and it paints a clear picture as to why capital is flowing into BTC.”
Read More“When Facebook launched Diem, they immediately ran into regulatory issues around financial stability and data privacy,” said Joe Burnett, Mining Analyst at Blockware Solutions.
“With the company already under pressure to improve their data privacy practices, which significantly affects their core business model of serving highly targeted ads based on data extracted from their users, it’s no surprise they wanted to avoid another uphill regulatory battle.”
“Every company will likely continue to have a crypto strategy,” Burnett added. “It’s tough to say what Meta’s next move will be, but it wouldn’t be too surprising to watch them follow the steps of MicroStrategy, Square (renamed Block), and Tesla who have accumulated a Bitcoin position on their balance sheet.”
“With Meta’s user growth slowing as of their last earnings report, they could accumulate Bitcoin with their excess cash flow to preserve and grow shareholder value while they look for other opportunities to generate alpha within the company.”
Read MoreWill Clemente, a lead insights analyst at Blockware Solutions, sees a strong correlation between the price of bitcoin and other risky assets like tech stocks.
"Being perceived as a risk-on asset by traditional asset managers, bitcoin and overall crypto markets continue to trade with a high correlation to equities, particularly tech stocks and the Nasdaq overall," Clemente said.
Thus, the price of the digital currency is expected to move in tandem with these assets.
Meanwhile, Clemente keeps an eye on a number of catalysts that could be bullish for the digital currency like an oversubscription to the El Salvador bitcoin bond, Latin American countries following El Salvador, spot ETF approval, and mining adoption with rumors of Russia.
Read More“You're going into economies that have been decimated,” said Mason Jappa, CEO of Blockware Solutions, a crypto mining firm whose flagship facility is in eastern Kentucky, near the Illinois border. “You need the perfect cocktail where you're going to lay foot with your mining operation.”
Blockware received a package of incentives for its $28M operation in Paducah, which was expected to create 10 jobs with an average wage of $23 an hour, the Lexington-Herald Ledger reported last year. The deal has prompted state legislators to consider establishing even more incentives for the industry, especially since they are gravitating toward rural towns that lost coal industry jobs.
Read MoreMason Jappa, co-founder and CEO of mining company Blockware Solutions, remarked that both Proofs have their comparative advantages, but, in echoing Belzaire’s testimony, underscored the compatibility potential PoW networks possess towards renewable energy. In that sense, Jappa sees PoW mining as a "net positive for society".
Read MoreMason Jappa from Blockware Solutions, noted that more and more miners chose the US for three key reasons.
1. Miners are looking for relatively stable regulation. Miners from China and Kazakhstan recognise the importance of setting up large-scale farms under governments that aren’t going to shut down their operations overnight.
2. States in the US are actively offering incentives to lure miners into setting up operations. For example, Kentucky offers tax breaks specifically for Bitcoin miners.
3. The US has the largest most developed capital market in the world. Public and private markets in the US offer the best opportunity to raise significant amounts of capital for Bitcoin mining.
Read MoreData from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping overnight to hit $42,000 for the first time since December.
Although not the upside breakout that many had wanted, the move was nonetheless predicted, Bitcoin essentially “filling” the space left after it briefly wicked to $41,800 early last month.
Those lows were the result of a liquidation cascade, and while long positions also felt pain this time around, skepticism remained as to whether the revisiting of $42,000 had been enough to put in a price floor.
“Honestly surprised we didn’t see more of a flush today if this was aggressive longs built up. Could still resolve to the upside,” analyst William Clemente wrote in a series of tweets about the action.
Read MoreBlockware Solution’s Lead Insights Analyst, Will Clemente was featured in the following CoinTelegraph post.
Bitcoin (BTC) bears lost out at the last minute as 2021 came to an end — and consensus is building around China again being the reason for weakness.
Read MoreWill Clemente, insights analyst at Blockware Solutions, agreed that the sell-off was derivatives-based and added that open interest has been at all-time highs for more than a month while funding rates have been positive. He also said it could be the set-up for another bull run like the one that kicked off this year.
“There’s a reasonable case that we could see the opposite effect heading into Q1, as funds are willing to take on more risk for the new year with fresh profit and loss,” he said. “This effect assisted in bitcoin’s massive move in January 2021.”
He added that, network dynamics are still “healthy and show supply continues to move to long term investors.”
Read MoreBlockware Solutions, a bitcoin mining firm, released an in-depth report last year on how halvings directly affect miners and how much sell pressure is removed from the market post-halving.
Take a look at the entire report to get a good idea of how they reached their specific conclusions, but they estimated that USD-denominated forced miner selling would fall 70% after the halving with no change in price. This was likely a major catalyst for the current bull run.
Read MoreChinese miners may eventually face the tough decision of waiting for the government to have a change of heart, or sell their machines at a time when the market is already inundated.
“There’s limited hosting space and it’s such a concern that about 30% of the Chinese miners are just throwing up their hands and capitulating,” said Mason Jappa, the chief executive officer of crypto mining hardware broker Blockware Solutions. “They’re selling rigs for 2020 prices.”
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