Fort Worth to Become First US City to Mine Bitcoin

Fort Worth in Texas will begin a pilot project with three Antminer S9 mining rigs following a vote by the city council on Tuesday.Read MoreFeedzy

Fort Worth, the fifth-largest city in Texas, will become the first U.S. city to start mining bitcoin via a new pilot project, according to a statement on Tuesday. The project was approved in a vote by the city council on Tuesday as part of a larger docket of crypto-friendly initiatives.

The city has partnered with the Texas Blockchain Council (TBC), an advocate for blockchain technology in the state, for the program. Fort Worth will maintain three Bitmain S9 mining computers in a climate-controlled location in the Information Technology Solutions Department Data Center located at Fort Worth City Hall, where they will be housed on a private network to minimize security risk. The mining rigs were donated by TBC.

“These small but powerful machines mark Fort Worth’s larger commitment to becoming a leading hub for technology and innovation,” said Mayor Mattie Parker. The city aims to experiment with the mining process through this pilot program and will evaluate it again in six months. Crypto software and services company Luxor Technologies and bitcoin miner Rhodium Enterprises are providing strategic guidance for the city’s pilot project.

Bitmain’s Antminer S9 machines are one of the oldest and cheapest bitcoin mining machines available and popular among new miners. Currently S19 models are more popular among more advanced and industrial-grade miners.

“By starting small to learn as they go, Fort Worth is positioning itself to be the bitcoin mining capital of Texas,” said TBC president and founder Lee Bratcher.

After China’s sweeping ban of the crypto sector last year, the U.S., particularly Texas, has become the dominant hub for miners due to its cheap power and mining-friendly local legislations. Fort Worth’s move is likely to further help the bitcoin-friendly jurisdiction narrative of the state, which comes at a time when global policymakers are pushing for more regulations for the miners.

Most recently, New York lawmakers have advanced a controversial bill that aims to put a two-year moratorium on select proof-of-work crypto mining operations in the Empire State.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Leave a Reply

Your email address will not be published.