Bitzero announced plans to invest $500 million in constructing a central headquarters for bitcoin mining operations in North Dakota. The company has currently raised $100 million and is planning a Canadian IPO within the next 60 days.
Bitzero’s $500 Million HQ
Bitzero Blockchain Inc., a 100% renewable bitcoin mining company “driven by green power source, disruptive innovation, and technology,” is establishing its North American headquarters in North Dakota.
The miner outlined the plans in a joint press release with the governor of North Dakota’s office and renowned investors such as Kevin O’Leary on Thursday.
Officials from Bitzero revealed plans to invest $400-$500 million in the forthcoming data center and to collaborate with MHA Nation’s greenhouse project to utilize heat from Bitzero operations year-round for agricultural production.
“It helps Main Street, it helps every citizen, it takes our state off the dependence of being, as we have been for over 100 years, dependent on revenues at the state level,” said North Dakota’s Governor Doug Burgum.
Bitzero to Install 200 MW Power in Data Centers
While the exact site of Bitzero’s headquarters has not been revealed, the CEO has indicated that it would most likely be in Bismarck or Fargo and will employ 15-20 people for operations. Over the next two years, the bitcoin mining company plans to build out 200 megawatts (MW) of power in data centers.
In addition to the data centers, the business plans to establish an assembly and distribution hub for graphene batteries technology, which is estimated to require an investment of $200-$500 million over the next two to three years.
Bitzero has currently raised $100 million in venture funds and intends to make a Canadian initial public offering (IPO) within the next 60 days.
“Solidifying a North American headquarters prior to the IPO was a crucial strategic piece for Bitzero, and we plan to begin consolidating operations to North Dakota as we scale,” said O’Leary.
In the statement, O’Leary hinted at another announcement this week regarding a project in Montana.
The news about using green energy in Bitcoin mining in North Dakota comes at a time when the New York State Senate has just approved a bill to ban Bitcoin mining for at least two years owing to environmental concerns.
Bitcoin Miners Confront Environmental Concerns
Bitcoin Miners have had to deal with environmental concerns and possible regulatory action over the past couple of years because of their high energy consumption. China prohibited all cryptocurrency transactions and Bitcoin mining last year because of the country’s energy crisis.
However, the restriction worsened the environmental impact of mining since several companies relocated to Kazakhstan and the United States and switched from hydroelectric to fossil fuel-generated electricity.
Upstate New York has been a favorite location for Bitcoin miners in the United States due to its supply of inexpensive electric power and abandoned coal power facilities that may be transformed into vast mining farms. Locals concerned about the environmental impact of these mining operations have opposed the crypto boom.
While some tokens, such as Ethereum, have attempted to address this issue by abandoning proof-of-work, the world’s most valuable and popular cryptocurrency has remained committed to the method.
Proponents of Bitcoin have maintained that proof-of-work is still the most secure way of transaction authentication, allowing the token to stay decentralized.