Chinese Firm to Transform US Defense Facility Into a Crypto Mine

 In Governments and Regulations

A Chinese firm plans to transform a former US defense facility into a cryptocurrency mining site.

Industrial equipment investment firm Wuhan General Group (China), Inc., is looking to purchase a former U.S. Department of Defense data center to transform it into a digital currency mine, said DataCenterDynamics.

The Nevada-based technology firm, which is transitioning itself into a blockchain-oriented entity, said it plans to install a 3MW power plant in the facility to house at least 1,300 mining machines to mine “all major cryptocurrencies” – notably Bitcoin and Zcash. The company then plans to expand its operation to 12,000 crypto mining machines and increase its power capacity to 30MW.

Wuhan General said it intends to complete all its plans before the end of next year.

“We had planned to build this operation three months ago, but with the bearish cryptocurrency market, we took a step back to reassess our strategy,” said Wuhan Group CEO Ramy Kamaneh.

He added, “The decision to wait for market stability was a good one, especially considering many cryptocurrency machines are no longer profitable in the current market. We acted in the best interests of the Company and its shareholders and firmly believe that the market has bottomed and a bullish market is starting again.”

The company is registered in the US and claims to be “focused in [sic] cryptocurrency mining operations.” The company’s core business said it “would focus its operation on large-scale mining cryptocurrency farms and explore other potential avenues and acquisitions to bring additional sources of income and assets to the company.”

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But its description is also causing confusion, as its Chinese subsidiaries in Wuhan, in Hebei Province, China still manufactures industrial blowers, industrial machinery, and power generation equipment. Its holding firm reverse-merged with the defunct United National Film Corporation in 2007 after going public in the US. Also adding confusion to the company’s thrust is its announcement to spin off its Canadian industrial battery unit called Strategic Development of Technology (SDT).

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