Chinese Investment Firm Buys US Department of Defense Office, Transforming Into Crypto Mining Farm

A U.S. Department of Defense data center will be transformed into a cryptocurrency mining farm later this by the Chinese investment firm Wuhan General Group, which recently purchased the facility.

Based on successive rounds of negotiation, the mining rigs will begin arriving in October.

Wuhan voiced the usual narrative of choosing the U.S. facility-cheap electricity supply, cold climates and uninterrupted internet connections, all of which factor into forming a significant directive while setting up a mining farm.

Apart from creating employment opportunities in the region, Wuhan aims to set a new mining center standards by scrutinization and to instill advanced security, safety and mining stability measures.

The 55,000-square-foot defense facility is equipped with 3MV of power and, based on these specifics, Wuhan estimates a total of 1,300 mining rigs can fill the facility.

Kamaneh added the company's decision "To wait for market stability" was a solid choice considering the falling profitability of mining rigs.

Wuhan's shareholders now believe the market has "Bottomed," and a bullish market is in the cards.

The development comes after several U.S. districts introduced revised tariffs for potential crypto mining centers.

In July, New York regulators passed an electricity rate scheme that allows mining businesses to negotiate contracts with utility providers in regard to usage and economic incentives.

Recently, the local government in Massena, N.Y., revealed its updated tariff conditions for mining businesses, which includes assessing firms on a case-by-case basis to provide electricity at variable rates.