Crypto-currency mining is a hot topic in Canada. Just days after Hut 8 announced the completion of its expansion in Alberta, ahead of schedule, we have news of another company’s growth. From Vancouver to 5000km east in Quebec City, new businesses have been jockeying to position themselves within the North American mining market. Here is a little on DMG, and what they are doing to establish an enviable position.
Who are they?
Canadian based DMG (Digital Mint Group) has announced that they have commenced the installation of a new mining facility. Based out of Vancouver, DMG is looking to become a North American leader in the mining industry. The team has wasted no time in establishing DMG as an up and coming force, with multiple partnerships/acquisitions announced. These include Blockseer, D-Link, and more.
What are they doing?
The current installation that is taking place is expected to be completed by September, 2018. This expansion entails both transformer, and electrical sub-stations. This setup will have the capability to deliver 85-megawatts and the power will be used to facilitate mining. This current expansion will result in the ability to ramp up operations to over 20 times their current capacity.
How will the power be used?
The primary method of mining services offered from DMG is known as MaaS (mining as a service). This is essentially cloud mining. Users will be able to sign up with DMG and mine BTC remotely. DMG will facilitate the entire process, while taking a percentage fee from the realized returns.
In addition to offering MaaS for remote customers, the company also directly mines BTC for themselves. They have indicated that it is this combination which has allowed for them to expand at the rate they have. MaaS, while not as lucrative as direct mining, affords a low overhead and constant stream of revenue. This is then used to reinvest in the infrastructure and facilities needed to expand.
Will they be successful mining?
Proof-of-work protocols have come under fire in recent months, as there are those that believe it is simply wasted energy. While some studies have shown it has a high level of energy consumption, there are those that believe these figures are inflated, and not accurate. Whatever the case may be, companies like DMG and Hut 8 are not deterred from developing this rapidly growing industry.
In a recent press release, Sheldon Bennett (COO of DMG) stated, “Building and managing a crypto mining operation at an industrial scale requires a world-class supply chain as well as direct access to local government and electricity providers. Our management team at DMG is unique in that we have the experience, the relationships, and the capital backing to do this successfully.”
With many believing the next BTC bull-run will occur before the end of 2018, DMG should be getting their facility running at just the right time. If the future holds what many think it will for BTC, then DMG will reap vast rewards for this investment in mining infrastructure.