Bitmain Technologies, the company behind the world’s biggest cryptocurrency mining corporation has announced plans to open a 20,000 square foot office in the West’s main technology hub, Silicon Valley.
The announcement represents the latest move by the Chinese mining giant towards expanding its operations into the United States. The new office will be located at Riverpark Towers in downtown San Jose, California.
Bitmain headed by its CEO, Jihan Wu, has been the longtime leader in the development of specialized hardware designed for cryptocurrency mining. The company is reported to have generated $3 to $4 billion in profits in 2017 according to Bernstein Research, with 70 to 80 percent of Bitcoin mining now being done using Bitmain’s commercially available mining hardware.
Additional estimates reveal that Bitmain’s private mining pools, Antpool and BTC.com, currently control over 40% of the hashing power on the Bitcoin blockchain.
Bitmain’s expansion into Silicon Valley will likely offer up a number of strategic benefits for its numerous partnerships within the U.S. The company recently announced controversial partnerships with Goldman-Sachs and EOS blockchain platform developer, Block.one. Bitmain also has plans to offer an IPO sometime this year.
Bitmain no doubt serves as the backbone for much of the Bitcoin economy, however, in a system designed to be decentralized network for digital currency, this may be a cause for worry. As Bitmain’s mining pools have continued to grow, many fear that Bitmain could be in position to single-handedly bring down the entire Bitcoin network if it gains control of 51% of the Bitcoin network hash rate.
In addition to the company’s central headquarters in Bei-Jing, Bitmain has recently opened new mining centers in Washington, Quebec, and Israel. The company plans to establish further operations in Amsterdam, Hong Kong, Tel Aviv, Qingdao, Chengdu, Shanghai, Shenzhen, Irkust and Wusia.
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