Setting up a Bitcoin Mining Company in Rural Virginia

Setting up a Bitcoin Mining Company in Rural Virginia

(TNS) – A ribbon cutting for a Bitcoin mining company located in the Bluestone Business and Technology Park in Tazewell County was conducted on Tuesday morning.

Blackstone Data Services, LLC will provide data center hosting, server and node maintenance, and manufacturing appraisal crypto mining containers for the benefit of a three-state region.

An expected private capital investment of $18 million over 10 years will initially create five new high-tech jobs.

The business will be the first to be located in the park’s shell building and two large external servers have already been installed for the company’s data center.

The mining business is the first of its kind in southwest Virginia and southwest Virginia, said Jonathan Belcher, executive director of the Virginia Caulfield Economic Development Authority (VCEDA).

“Our mission is to provide expert data and technology hosting services, enabling our customers to invest in new technologies without the hassles of self-hosting,” said Seth White, CEO of Blackstone. “Our vision is to offer a suite of data and technology hosting services that allow investors to easily access advanced cryptocurrency technologies and deploy them as investment vehicles.”

White said that at first he could not “understand” the concept of “mining” cryptocurrencies and “blockchain.”

But step by step his understanding developed so much that he was ready to get down to business, including $4 million worth of equipment.

“I would say in the next 10 years, when you buy a house and sell it… you will do that (buying, selling and recording the financial transaction) on the blockchain,” he said. “This blockchain is not hackable.”

What all this means is more jobs and more tax revenue for the county as we continue to grow as a company. Our goal is to help this county grow and thrive, White said.

Representative Morgan Griffith, R- 9th District, attended the event and said the park-based company is a “significant development for Tazewell County.”

“Data centers and cryptocurrency are bringing new economic opportunities to Southwest Virginia and Blackstone’s decision will help realize this potential while creating jobs and investment in our region,” he said.

Griffiths said the park is an example of “what you are today” may not manifest itself in new jobs and opportunities for 15 or 20 years, and “that’s what we’re here to celebrate today.”

He also said that the price of bitcoin will rise or fall, as is the case with many commodities.

“You have to look at it in that context,” he said. “But the economies of the world are looking forward to using digital currency in the future.”

Griffith said he’s excited that Tazewell County is at the forefront of “helping this new-born industry grow and mature through adolescence.”

“What Seth and his associates are doing proves that we are here in southwest Virginia looking to the future,” Senator Travis Hackworth said. “This is a bold move for our region and I applaud business, Tazewell County and VCEDA for diversifying our economy. This is the kind of entrepreneurship that makes us strong.”

Hackworth said the park has always been a “forward-looking” technology park that the county has invested in for business “like the one we’re seeing opening today.”

He said that the “vision” of the garden took many years to come true, but now it is.

“I think it is commendable that Tazewile County thought about this years ago,” he said, and it is good to see entrepreneurs investing in this type of business. “I can’t wait to see what Tazewil has in store for us.”

“We are delighted to welcome Blackstone Data Services to Bluestone Technology Park,” said Charlie Stacey, Superintendent of the Eastern District. “They will bring much-needed high technology, diverse business opportunities to Tazewell County and significant capital investment.”

Stacey said White saw the vision Tazewell County wanted in information and technology and a desire to diversify into “things we didn’t do and things we didn’t know.”

He said that some may be skeptical about bitcoin, cryptocurrency, and business, but that it is about understanding how they work and how they protect the assets.

“We built Bluestone for tech companies,” said Eric Young, Tazewell County Manager. “Blackstone Data Services is our first high-tech tenant and a welcome addition to Bluestone.”

Young said he now has a better understanding of what the company is doing.

“We can be part of this new world and part of this next step,” he said of cryptocurrency and its role in the evolving world of digital finance.

Belcher said work is on “all radar screens” and is growing.

“It fits well with the strategy of the region and the province,” he said. “When this project first came to the VCEDA board in February from the Tazewile Province Industrial Development Authority, our board was able to easily support it… It’s an industrial sector we wanted to grow in the region… We saw the potential of that.”

The clamshell building, which is now under a lease/purchase agreement with Blackstone, was constructed with funding from VCEDA.

Belcher said that in 2017, the VCEDA Board of Directors approved a loan of up to $2,739,700 for Tazewell County IDA to be used to fund site classification, site development, building construction, utility installations and expansions, improvements and other costs associated with the construction and development of approximately 40,000 feet A square of the Shell Technology Building to be occupied by Blackstone.

The system in use requires a large amount of electricity and the county is working with the AEP on how best to provide the necessary power, said Timothy Danielson, Tazewell County’s director of economic development.

All available power is already being used, he said, adding that the company wants 10 to 12 megawatts.

He said a meeting was held last week to try to raise funds to build a sub-station for the park. “We’ll see how it goes.”

Danielson said the substation will be necessary to meet Blackstone’s needs as well as provide power to other businesses located in the park.

“We’re starting to get people to look at the park, but right now we don’t have enough energy to park,” he said.

Blackstone will primarily provide complete data center hosting services to its customers who wish to purchase and deploy cryptocurrencies, nodes or other hostable server technologies.

A cryptocurrency is a digital currency that does not depend on any central authority, such as a government or a bank, to support and maintain it. It is a decentralized system for verifying that the parties to a transaction have funds that they claim use blockchain computer technology and computer analysis of transactions.

Bitcoin operates on a decentralized computer network or distributed ledger that tracks transactions in cryptocurrency. When computers on the network verify and process transactions, new bitcoins are generated or mined. Networked computers, or miners, process the transaction in exchange for the bitcoin payment.

The value of one bitcoin, according to industry sources, was $19,158 on Tuesday.

Bluestone Technology and Business Park is located on 680 acres at the foot of East River Mountain a few miles west of Bluefield. The park was completed in 2011, with grant funding of approximately $3 million and approximately $10 million from the State Tobacco Authority.

The park was designed to be more than a traditional industrial park, aimed more at “high-end” tech companies. The original plan also included adding high-end businesses as well as restaurants, a hotel conference center, a residential area, recreational facilities, hiking trails, rental cabins, and a mountaintop lodge.

© 2022 Bluefield Daily Telegraph (Blowfield, West Virginia). Distributed through Tribune Content Agency, LLC.

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