Blockchain technology company TMGcore is developing an enterprise-scale cryptocurrency mining operation in Plano.
Located in a more than 150,000 square foot Class A Tier III facility, its capable of a 100-megawatt live power load as part of a partnership with an affiliate of Houston-based Pinchal & Co., LLC, including a long-term lease for the facility and strategic real estate investment.
TMGcore’s business model is based on mining cryptocurrencies that utilize the SHA-256 algorithm for proof-of-work then immediately converting the mined coins into fiat currency, CEO JD Enright told Dallas Innovates.
“We have developed a Two Phase Liquid Cooling Immersion technology to dramatically decrease cooling costs by up to 90 percent, allowing us to mine anywhere — even in Plano in the middle of the summer.”
“Our automated system dynamically adapts its mining efforts toward the most profitable token at any given time, factoring in real time market price, difficulty of access. and hashrate,” Enright said.
Along with the technology built into TMGcore’s crypto mining optimization, it also developed technology deployed in the physical location to address the issue of keeping the coin mining equipment cool.
“Because of the immense energy required to mine cryptocurrency, computers regularly overheat and mining locales usually need to be in cool locations with intricate air cooling systems,” said Enright. “We have developed a Two Phase Liquid Cooling Immersion technology to dramatically decrease cooling costs by up to 90 percent, allowing us to mine anywhere — even in Plano in the middle of the summer. This also allows us to use Texas’ available energy, more efficiently to help power blockchain infrastructure as it scales up.
POWER, REAL ESTATE FACTORED INTO LOCATION DECISION
The Plano location for the facility was chosen because of three factors – low-cost power, the ability to purchase a data center with at least 100-megawatt capacity, and real estate appreciation of the data center. Texas is attractive because of its abundant energy available on the power grid as well as available real estate, but cryptocurrency mining hasn’t been able to take advantage of the state’s energy supply because of the hot environment. TMGcore’s cooling technology helped it overcome this challenge.
According to TMGcore, the newly launched mining operation will be one of the largest independently owned U.S. facilities.
“TMG is poised to provide industrial grade blockchain infrastructure not only for cryptocurrency multi-coin mining, but for blockchain applications our corporate neighbors will eventually embrace and use,” said Enright. “As a result, the city of Plano was selected as TMG’s top choice to launch its industrial grade two-phased liquid immersion cryptocurrency mining facility.”
The project included a $60 million investment from Pinchal & Co. principals, an additional $7 million from the real estate company in a separate investment, and $10 million from private equity investors. According to TMGcore, the newly launched mining operation will be one of the largest independently owned U.S. facilities.
NORTH TEXAS LEADING THE WAY
TMGcore’s enterprise-scale crypto mining operation will have a huge local impact said Cody Marx Bailey, managing partner at crypto asset investor XRAM Capital, and founder of the North Texas Blockchain Alliance, and it “plants a flag for the rest of the nation to see.”
“We’re in the cart and buggy stages of this new industry and paradigm shift. Dallas has a history of building the infrastructure and rails of different industries. We built the semiconductors, the telecom infrastructure, banking, insurance. It’s in the water here, for North Texas to lead the way in these infrastructure plays,” said Bailey. “I think it’s great to see enterprise level resources being deployed here. Only good things can come from this.”
“It’s in the water here, for North Texas to lead the way in these infrastructure plays.”
Cody Marx Bailey
Bailey added, “Texas made its bones in wildcatting and prospecting for the future. There’s actually a lot of similarities in crypto mining and the oil and gas industry and, in time, I think the two groups will work together.”
Cryptocurrencies are gaining mainstream acceptance with traditional financial institutions understanding how to harness the technology, Enright said. Two hurdles to wide acceptance are making cryptocurrency “as easy to use as your Visa card” and educating people on the benefits and uses of cryptocurrency, he said.
“Over the next two to five years, we will see the cryptocurrency market explode, both on the investment side and in daily use. I would not be surprised if we saw a cryptocurrency like Litecoin or BCH being used for everyday transactions and Bitcoin taking the place of gold when it comes to a store of value,” Enright said.
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