Compass Mining: A Balancing Act
Just a couple of weeks after announcing staff layoffs and salary cuts, Compass Mining has surprisingly revealed plans for a major expansion. It’s almost like watching a soap opera unfold. The company is partnering with Compute North for a massive 75 megawatt (MW) hosting setup at their data center in Granbury, Texas. Because what says ‘I care about my employees’ more than investing in more miners while laying off workers?
Recent Layoffs and Leadership Changes
In mid-June, Compass Mining made the hard decision to retrench 15% of its workforce and implement salary cuts for top executives – a classic “we have to tighten our belts” story. This tough love approach followed the resignation of key figures, including CEO Whit Gibbs and CFO Jodie Fisher.
Utility Bills and Other Woes
Things went south quickly when the company lost one of its hosting facilities in Maine over missed utility payments. Nothing says ‘trust us, we’re still a viable operation’ like being ousted for unpaid bills.
It’s All About the Numbers
The new expansion is set to kick off in August, with Compass planning to deploy 25,000 application-specific integrated circuit (ASIC) miners to the existing Wolf Hollow site in Granbury. To put it simply, they’re going all-in on the Bitcoin game.
The Technical Aspects
This facility isn’t just any old data center. It boasts a 1.1 gigawatt (GW) combined cycle natural gas-fueled plant designed to minimize carbon emissions – I mean, they do want to look good while they’re at it. But with the ability to shut down operations quickly if the grid gets overloaded, they’re also flirting with a backup plan. Played it safe? Not quite.
Texas Heat and Bitcoin Miners
It’s worth noting that Texas has been sizzling under a record-breaking heatwave lately. This has led many miners to collaborate with the Electric Reliability Council of Texas (ERCOT), throttling back operations to lighten the load on the power grid.
Why Still Texas?
Despite these conditions, cryptocurrency miners are flocking to Texas like moths to a flame. The siren song of lower energy costs and minimal regulations is just too tempting.
The Stock Market Isn’t Crying Yet
Funny enough, even with all this chaos, mining stocks hit a one-month high. Marathon Digital Holdings Inc saw a staggering 99.85% increase over the past month. Not to be outdone, Riot Blockchain Inc is up 65.65%, and Canaan Inc has climbed 42.27%.
It seems like the Bitcoin price is rising again too, reaching $22,938 at the time of this writing. So, while Compass Mining’s moves may raise eyebrows, it sure seems like the market is here for the long haul.
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