Bitcoin mining companies move to rural Texas town

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Rockdale boom: Bitcoin mining companies move to rural Texas

Rockdale was once home to the world’s largest aluminum plant, run by Alcoa.

ROCKDALE, Texas – For decades, aluminum has been produced at Alcoa’s sprawling industrial complex just southwest of Rockdale. The work was then powered by a coal-fired power station.

Now, not far from Alcoa’s main site, a new kind of mining is underway by a company called Whinstone, a subsidiary of Riot Blockchain, Inc ..

“Exactly if you think about it, like the old technology to create energy, the new technology to use energy and the coined term; mining is used. It’s an interesting way to look at it, ”said CEO Chad Harris.

FOX 7 Austin took a tour of the facility which was built from the ground up. Inside one of the three long buildings, there are walls of computers that overhang. The buildings are 1,050 feet long, the size of three football fields. Each computer – called a miner – performs complicated cryptocurrency calculations; the Bitcoins reward.

“What got us to Texas was two things. First, A; we needed electricity. And B; I read an article in a magazine called Wired Magazine and it was called ‘Hard Luck Town Bet on Bitcoin and Lost, ”Harris said.

A few years ago, another cyber currency company arrived in Rockdale. It is located not far from Whinstone, on the Alcoa complex, and is currently gaining momentum. Whinstone has 150 employees and more than 200 construction workers carrying out an expansion project.

“We quickly realized that we were creating a workforce culture that was echoing in the community,” said Harris.

Now, similar companies want to know about this city of less than 6,000 inhabitants. “We get an average of two to three calls every week from different miners, in fact I spoke to one this morning who was interested in coming,” said Jim Gibson, director of economic development for Rockdale.

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There are a lot of losses to be made up. When the Alcoa complex closed, 1,700 jobs were lost along with about 30% of Milam County’s tax revenue. The arrival of Bitcoin miners, a new type of high-tech company, is not touted as a savior by city officials. However, it generates something that Rockdale hasn’t felt in years.

“There’s a heartbeat, I think it started with our ‘blue sky’ video that we made,” according to Mayor John King.

That campaign four years ago was an attempt to bring Amazon to town. The goal of yesterday and today is to reopen storefronts.

“We haven’t seen any real new businesses popping up in town yet. (Is this the next step?) I think so, obviously this is the next step as we continue to grow and the publicity that we come out of. Bitcoin says here is a small town that is set to thrive, ”King said.

Abi Vasquez is one example. Family members have worked at Alcoa before and she saw what the closure did to Rockdale. “It was becoming a ghost town,” Vasquez said.

Vasquez moved but eventually returned. Today, as the administrator of the Whinstone Project, she not only witnesses the changes in the city, but also helps make them happen. “Oh, it’s amazing, it’s a great feeling.”

Earlier in the week, the 31-mile-long Alcoa property was bought for $ 240 million by a North Texas investment group. It is believed that several parts will be redeveloped, which is why the city’s big bet may not be a Bitcoin payout. An agreement involving a more traditional manufacturer is being finalized. This company could also locate on the Alcoa complex and bring more than a thousand jobs to Rockdale.

___ MORE SECURITIES: The price of a bitcoin exceeds $ 50,000 for the first time Tesla invests $ 1.5 billion in bitcoin and plans to accept “Checkout with Crypto” as a payment method: PayPal to allow customers to use cryptocurrency for online shopping ___ DOWNLOAD: FOX 7 AUSTIN NEWS SUBSCRIBE: Daily Bulletin | YouTubeFOLLOW: Facebook | Instagram | Twitter

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