BTCS Inc. has announced that it has increased its Ethereum-mining hosting business to approximately 150 kilowatts, up from approximately 50kw announced in March 2016.
Charles Allen, CEO of BTCS, commented: “We have gained valuable expertise since launching our Ethereum pilot program in March. Ethereum has rocketed to nearly 20% of the market cap of Bitcoin in less than two years, led by rapid adoption and growing support from major players in tech and finance including Gemini and Coinbase (which just rebranded to GDAX). We believe our experience, in connection with additional capital, should allow us to further expand our Ethereum mining and hosting businesses, to diversify our exposure to bitcoin, and to use more of our available power capacity.”
Ethereum is a digital currency and blockchain platform which specializes in smart contract applications. Like other blockchains, the decentralized network of Ethereum enables transactions without downtime, censorship, fraud, or third-party interference. The value of Ether this year has grown over 1,300%, with the total value of all Ether now surpassing $1 billion.
Allen explained: “With the year-to-date increase in the difficulty of mining Bitcoins, and the more attractive economics currently displayed by Ether, we’ve taken the opportunity to sell some of our early-generation ASIC (“application specific integrated circuit”) servers. We’ve also entered preliminary discussions with a designer of specialized Ether mining servers, and we’re exploring the possibility of being the exclusive hardware assembler for that designer. Unlike ASIC servers, Ether mining servers utilize off the shelf computer hardware, custom software and can be made-to-order with limited capital investment. We have the space to operate the assembly business at our NC facility, and we are in talks to become the exclusive distributor. While we can provide no assurances that any partnership or relationship will materialize, we are currently hosting their first generation prototype servers. We plan to provide updates on this initiative as it develops. In regards to Spondoolies-Tech Ltd., we are actively exploring potential claims we may have from prior investments and we will pursue all options ahead of the July hearing.”