Two crypto mining companies, Bit Digital and BitMine Immersion Technologies, have signed a letter of intent to form a hosting partner that will begin with 7,000 current-generation ASIC miners.
The decision comes after Bit Digital, based in New York, completely abandoned the Chinese market following the mining prohibition and shifted its attention to North America.
Bit Digital and BitMine Immersion expect to start shipping ASIC miners in the coming weeks and months, with capacity reached by the end of August.
Bitmain’s latest Antminer ASICs start at $7,500, implying that the deal might be worth between $50 and $60 million.
The businesses intend to mine bitcoin largely in immersion-cooled containers, which keep the devices cold and enable improved productivity and energy efficiency.
Under the terms of the multi-year agreement, The two mining companies will split the revenue from bitcoin mining.
“We are happy to begin our relationship with BitMine Immersion Technologies and have known the team for some time. As a company, we have been intrigued by mining using immersion technology, and we are happy we found an ideal hosting scenario allowing us to utilize the benefits offered by immersion cooling of our machines,” said Bit Digital CEO Bryan Bullett in the press release.
