Bitcoin Shop Inc (OTCMKTS:BTCS) announced that it secured an 83,000 square foot facility to expand its mining operations. The facility is almost 1.4times the size of an NFL football field. Bitcoin Shop is undertaking the construction of a universal digital currency ecosystem. It also launched a multi-signature security storage solution on the new website.
Bitcoin Shop bought 100,535 miners from Spondoolies Tech Ltd. it totaled 550 TH/s of hashing power, which implies the company expanded its mining capacity by as much as 161%. Bitcoin Shop Inc (OTCMKTS:BTCS) will place the newly bought equipment on its website, which would result in total mining hash rate to 891TH/s.
Reduction in operating costs
The expansion of operations will result in reduced operating costs at the new facility. The operating costs inclusive of power will be almost 30% lower than the operating costs prevailing at the current facility. Bitcoin Shop will have to do minimal improvements at the new facility, after which it will be handle more than ten MW of power. It can power up to 40,000 TH/s of mining hardware. Bitcoin Shop Inc (OTCMKTS:BTCS) provided all related details of its planned services on a new website. It covers a secure storage solution as a significant step in the construction of its universal ecosystem.
Seizing market opportunities
Charles Allen, the CEO of Bitcoin Shop, said that they are capturing market opportunities offered by the recent decline in Bitcoin prices. The expansion plans are based on the current price of Bitcoin. At this point, cost structure matters and Bitcoin Shop has one of the lowest cost mining facilities in the industry. Even if Bitcoin Shop Inc (OTCMKTS:BTCS) doesn’t opt for expansion, the mining operations could result in at least 350 Bitcoin in 1Q2015. Bitcoin Shop will also issue 250,000 shares of company’s common stock to Spondoolies as part payment for the equipment. It will result in no dilution to the Bitcoin Shop’s public shareholders.