Applied Digital, a Dallas-based crypto mining company, has dramatically intensified its Bitcoin mining output. On Friday, the Applied Digital team officially launched a new data center in Texas.
According to the announcement, the new mining facility will generate 200 megawatts. The report demonstrated that the Garden City-based mining facility will be the third site to be established by Applied Mining in Texas. The mining company plans to optimize the operation of the newly launched site and propel the hosting capacity by around 480MW.
Applied Digital Opens New Data Center
News concerning launching the new data center fueled the Applied Digital stock listed on the NASDAQ under the ticker symbol APLD to drop by 5.3% on Friday. The bearish momentum triggered the APLD to trade at $4.69.
The establishment of the new mining site positions Applied Digital as a top rival of Riot Blockchain, which has a well-operational 1GW mining site in Texas. In readiness for the upcoming Bitcoin (BTC) halving, the crypto miners have invested in creating a balance in energy production.
A report from Cambridge demonstrated that the Bitcoin network requires 14.83 GW to create a new block. The Cambridge estimated energy illustrated that Bitcoin mining requires high power to create hashes and build the next block. In return, the Bitcoin miner is rewarded by newly minted Bitcoin.
A recent study by Bitinfocharts indicates that Bitcoin requires approximately 400 exahashes per second (EH/s) to create a new block.
Applied Digital Seeks to Expand its Revenue Streams
Speaking at Garden City, the chief executive of Applied Digital, Wes Cummis, confessed that the new data center will supply approximately 7 to 8.5 exahashes. The CEO admitted that the hash rate produced will benefit other firms.
The executive noted that Applied Digital will operate mining rigs from other companies. The decisive action to use a mining rig for other companies aims at expanding the Applied Digital revenue streams.
A review of the Q2 revenue report demonstrated that Applied Digital generated $22 million from mining activities. The Q2 report indicated that Applied Digital will make assertive moves to redefine the Bitcoin mining sector.
Profitability of HPC Cloud Services Overtakes Bitcoin Mining
Beyond this, the Texas mining company is slowly transitioning to high-performance computing (HPC). The shift to HPC aims at enabling the company to generate considerable revenue.
An earlier report from Adam Sharp, a research director at HIVE Digital, revealed that HPC services are more profitable than Bitcoin mining. Even though the HPC services require large data centers with well-fitted cooling systems, Sharp noted that HPC requires less energy than Bitcoin mining.
In support of Sharp argument, the Applied Digital CEO revealed that the Bitcoin miner seeks to expand its HPC and AI outputs. The executive stated that Applied Digital aims to provide innovative infrastructure solutions for its HPC to transform the conventional data center.
The CEO added that the Bitcoin miner will focus on developing the current blockchain-powered operation and HPC applications.
