Blockcap Sets Up Operational Base In Texas

Blockcap, a US-based Bitcoin mining firm, said that it had considered setting up operational bases in Austin, Texas. The crypto company explained that immediately its new infrastructure is fully functional in Austin, a city now popularly referred to as Silicon Hills, its hashing capacity will rise to as high as 3.5 exahash per second from 42,000 rigs, which is twice the current capacity. Data obtained from blockchain sources indicate that the 42,000 rigs represent 2% of the total hashrate for the whole Bitcoin network, which is approximately a 167 million tetrahash per second today. But Blockcap said that the hashrate would be 1% of the entire Bitcoin network.

Austin is most suitable for blockchain operations— Feinstein

In a statement, the Blockcap Chairman and founder Darin Feinstein, remarked that Austin has a conducive environment that will enable the firm to quickly attain its goals and make the city the epicenter of the U.S.’ blockchain technology.

He added that the Blockcap management sees Austin as the most suitable place to expand its operational capacities at local and international terrains. Feinstein referred to Tesla Motors’ establishment of its “Gigafactory” in Austin as one reason Blockcap prioritizes the city, which is now popularly nicknamed Silicon Hills.

Not long ago, Elon Musk, the founder and CEO of the electric car manufacturer, bought a home in Austin for the sum of $3 million at the time its company is expanding in the same city at a place not far from the Bergstrom International Airport. Blockcap has not yet revealed the exact place it is planning to situate its office in or the number of workers it will employ, but the CEO assured that it would “hire locally.”

Meanwhile, Musk tweeted in March that Tesla would be employing over 10,000 workers in Texas when its “Gigafactory” takes off, and this will raise Tesla’s total workforce by 14%. Recall that tech companies, such as Oracle and Hewlett Packard, have planned to establish operational offices in Austin, prompting people to name the city the “Silicon Hills, indirectly referring to Silicon Valley—which is becoming the housing capital of the U.S.

The house may be beyond the reach of many of the employees

While some people can buy homes in the city in cash, many of the company’s workers may not be able to afford the 20% down payment for a home purchase. In April 4, Musk tweeted about the scarcity of houses in Austin, implying that his workers might not find it easy to get houses to buy if they are willing to relocate there.

Meanwhile, Rick Perry, former Texas governor, has thrown his weight behind the influx of Blockcap and other tech companies to the state. In Perry’s remarks, Texas is now the chosen location for the blockchain industry because of the city’s growth prospects and the potential to boost the city’s economy.

Established in 2020 by a group of blockchain experts, Blockcap has in its capacity about 12,000 mining rigs, producing over 7 BTC or $416,550 daily as of the time of writing this report. Blockcap raised over $75 million through two funding campaigns managed by Off The Chain Capital and Foundry Digital. Blockcap recently announced that it had purchased Bitcoin mining machine worth over $500 million.