Bladetec to build UK’s largest bitcoin farm

Bladetec, a UK-based IT hardware provider, recently unveiled plans to set up a bitcoin mining farm in the southeast of the UK.

Dubbed the Third Bladetec Bitcoin Mining Company Ltd (TBBMC), the project aims to raise £ 10 million (approximately US $ 13.9 million) from investors to build and commission the farm over the next two to three years. The developers then plan to sell the coins obtained during the mining, as well as the mining hardware to ensure a return on investment.

Bladetec founder John Kingdon argues that investors “don’t run the risk of losing money.” According to his calculations, only the sale of mining equipment will lead to profit. However, it is not known if factors such as lower hardware prices and higher mining costs, which require more electricity and processing power each year, were factored into the calculations.

TBBMC expects return on investment to follow one of four scenarios based on Bitcoin’s price over the next two years. Scenarios range from a price drop of up to 40 percent in a year, to a price increase of more than 50 percent.

Founded in 2002, Bladetec has provided IT support, procurement and consulting services to bodies such as the UK Department of Defense, NATO and the National Network. According to Evenstry, TBBMC will be the first investor-funded miner in Europe as a limited liability company protected by UK law.

The TBBMC project will cover 3,500 square feet at three locations in London, Surrey and Suffolk. The Telegraph writes that given the high mining price in the UK, which is reportedly around $ 8,400 to get 1 bitcoin, most of the funds raised will be spent on electricity bills as the company plans to mine 1280 bitcoins.

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