Coinmint LLC is turning a former New York State smelting factory into a sprawling cryptocurrency mining facility.
Show Me The Money
Coinmint LLC is taking up a massive renovation project, turning a former aluminum smelting facility in Upstate New York into a cryptocurrency mining farm. The company claims to operate the largest digital currency data center in the world. According to Bloomberg:
“Coinmint LLC is seeking to borrow as much as $50 million over five years to purchase and install servers at its sprawling 1,300-acre site in Massena, NY.”
Coinmint is offering as much as 12 percent returns to lenders. This is a higher rate than nearly all of the top-ten rated high yield bonds, as reported by U.S. News in March.
As higher interest rates usually coincide with a higher percentage of risk, it could be expected that many lenders will assume the project is a high risk simply because it involves cryptocurrency, mining, and digital assets. Even investors with experience in the cryptocurrency markets might assume the bear market will continue throughout the next year or so, and choose to avoid exposing themselves to adverse risk.
Mining To The Moon
The Massena, New York facility is positioned advantageously in an area with a cool year-round climate and sits directly next to the St. Lawerence River, allowing for cheap and plentiful hydroelectric power.
Cryptocurrency mining has been on the decline over the course of the year.
Mining companies were popping up everywhere with dreams of building the biggest mining farms and making the most profits with the expectation that cryptocurrency prices would continue to fly to the moon. Those dreams were dashed for many over the past ten months. However, the increased interest from miners and institutional investors as of late might be positive signals for the year to come.