A subsidiary of SBI Holdings, the financial services giant of Japan, is partnering with Northern Data AG, a German tech company, and Whinstone US Inc, a Texas-based data center operator.
SBI #Crypto Subsidiary Partners With Northern #Data on #Mining Project: SBI Holdings’s subsidiary SBI #Crypto is partnering with German tech company Northern #Data AG and Texas-based #Data centers operator Whinstone US Inc https://t.co/CpHE4gPw6m pic.twitter.com/N0YWsYkvpM — Saeed Valadbaygi (@SaeedBaygi) February 13, 2020
On February 13, it has been reported that the partnership was revealed in an announcement, detailing that Whinstone, a subsidiary of the Frankfurt-based Northern Bitcoin AG, will host SBI Crypto at its data center in Texas, as well as assist SBI Crypto in the development of blockchain-related projects.
Carson Smith, the CEO of SBI Holdings, said that the firm had been making plans with Whinstone and Northern Data for the Texas mining farm since early last year.
However, the announcement noted that SBI Crypto may also invest in Northern Data equity.
The announcement would appear to confirm previous reports that the firms were developing a major crypto mining operation as last month, SBI purportedly signed a deal with Whinstone to process cryptocurrency transactions at a new mining facility.
In November 2019, Northern Bitcoin entered a merger agreement with Whinstone to jointly build what will supposedly be the world’s largest mining farm. Northern Bitcoin AG’s new site will reportedly launch operations with an initial capacity of 300 megawatts, expected to hit 1 gigawatt by the close of 2020.
It has been analyzed that SBI has demonstrated a heightened interest in digital currencies over the past months by having implemented technologies by Ripple and blockchain consortium R3 as a major part of its strategy to enable a global standard for financial operations such as international payments and trade finance.
According to SBI’s financial report as of September 30, 2019, the company saw major growth in its crypto-heavy venture capital arm, SBI VC Trade, in 2019 amid a general decline in SBI’s revenue.
Thus, alongside notable growth of crypto exchange-driven profits, SBI also recorded a significant increase in profits from SBI Crypto.