In the New Era of Data Centers, One Microcap Is Standing Out as a Pioneer

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Monday, March 13, 2023

We tend to think of computing power only as it exists in 21st Century because this is the era of the internet, miniaturization, mobility, and mass consumption. However, what we think of as data centers today were called computer rooms housing mainframes 60 years ago. The evolution of computers has been a back-and-forth exercise in increasing computing power and engineering new ways to keep them cool.

So far, mechanical fans and heat sinks, along with other innovations such as complementary metal oxide semiconductors (CMOS), has been sufficient for denser computing, but it is time to re-visit the past to prepare for the future. 

IBM (NYSE: IBM) invented the first direct liquid cooling system in the 1960s, which was used in mainframe applications until the emergence of CMOS pushed it to the backseat in the 1980s due to the fact the CMOS systems generated less heat. Fast-forward a few decades and computer complexity and density is leading to a renaissance in next-generation liquid cooling methodologies.

That is great news for companies like BitMine Immersion Technologies, Inc. (OTCPK: BMNR) that are using cutting-edge tech for thermal control of densely packed computer banks.

The timing is also right considering the global energy crisis and heightened sensitivity about power generation and consumption as they relate to global warming. There are two facts in play here: 1) data centers are inextricably connected to the world today and 2) data centers use a lot of electricity.

The efficiencies in computing offered by liquid cooling positively impact the energy issue, while also offering better profit and use potential.

BitMine is at the forefront of a transition in bitcoin mining, using immersion cooling technologies that are growing in popularity with data centers. Immersion cooling is an advanced method of thermal control involving immersing computers in a circulating non-conductive liquid, usually an oil or engineered fluid. The heat that is generated by the computers is immediately transferred to the liquid and moved away from the unit without the need of heat sinks or mechanical fans that are ubiquitous in computers today.

The benefits of immersion technology abound, including reduced maintenance, fewer mechanical failures, longer computer life, smaller footprint, and improved reliability. These all play into improved margins and lower operating expenses along with safely facilitating up to 25 percent overclocking, which translates to faster mining and more revenue. Further, immersion technology is far more efficient, quieter, cleaner, and environmentally friendly than conventional cryptocurrency miners and can save operators 95 percent on cooling costs. There is zero water waste and the heat that is captured can be re-used. 

BitMine is spearheading the utilization of immersion technology in Bitcoin mining. The company’s flagship operations are in Pecos, Texas and Trinidad, where it has secured low electricity pricing for its mining systems. The company is targeting the launch of operations in the coming weeks and months, positioning BitMine as one of the first in the world whose primary focus is immersion technology for Bitcoin mining.

Riot Blockchain (NASDAQ: RIOT), one of the largest publicly-traded crypto-miners, is also focused on immersion tech, constructing a 700-megawatt Bitcoin mining facility and 200-megawatt industrial-scale immersion system at its Whinstone, Texas facility. CleanSpark (NASDAQ: CLSK), which prides itself on sustainability, is also pursuing the use of immersion cooling at its facilities, as is Argo Blockchain (NASDAQ: ARBK), which recently appointed Seif El-Bakly as interim CEO.

BitMine said last week that negotiations are complete and an agreement has been reached on electricity pricing for its Trinidad operations. BitMine previously signed an agreement with its Trinidad partner to co-locate up to 125 800-kilowatt containers for hosting digital asset miners on properties selected from 93 potential locations owned by the partner. In October 2022, BitMine completed the installation of hosting containers with capacity of 1.6 megawatts at the pilot site.

The launch was temporarily pushed back as the local electricity provider tried to hike the agreed upon energy price of 3.5 cents per kilowatt hour. Upon further discussion, the utility has agreed to honor this price and now BitMine is simply waiting on a hard start date to power-up the containers and start mining Bitcoin. 

"The pilot site is constructed and completed, and we look forward to energizing the mining containers using 100% immersion technology,” BitMine said in a statement. “At our low electricity rate and 25 percent overclocking potential, we are in an enviable position, particularly as Bitcoin prices are on the rise and some competitors have gone out of business,” the company added.

At its operations in Texas, BitMine is in a similar situation, waiting on the local utility to bring power to its installed miners, also using 100 percent immersion technology. BitMine has been advised that a finalized signed power agreement and firm start date are imminent.

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BitMine Immersion Technologies, Inc. (OTCPK: BMNR) Full Corporate Write-Up: Click Here.

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