With $32.5 investment, Dallas firm enters hosting business

There seems to be a silver lining to the ongoing crackdown by China on cryptocurrency mining, as investors in the US turn to local firms.

This is the reality of a Dallas-based firm that has now completed a US$32.5 million private stock sale led by Bitman, a provider of mining hardware and other solution with headquarters in Beijing.

Mining firm Applied Blockchain is looking to segue into the cryptocurrency hosting space. The firm is also putting plans in place to develop new facilities to support the extension of its operations into this new sector.

“We had investigated whether we could do this, we found sites… and then we designed these,” remarked Applied CEO and Chairman Wes Cummings. “We put a team together and then we showed this to Bitmain. They liked it enough that they wanted to invest and be a partner here.” 

Applied has now reached a five-year hosting deal with Bitman that would see the firm go live with over 500 megawatts of capacity. The firm’s existing investors SparkPool and General Mining Research are also part of the agreement. 

The firm has stated that the funds will be invested in the acquisition of landed properties and needed equipment to build hosting facilities for other mining firms and also set up its own operations.