NEWPORT — The Newport Economic Development Commission (NEDC) announced on Wednesday that three companies involved in cryptocurrency mining are locating in Newport.
The unrelated companies will engage in what is commonly known as “bitcoin mining,” although they will work with cyrptocurrencies beyond Bitcoin. The companies have selected Newport based in a large part on the availability of excess capacity at local electrical substations.
A definition of bitcoin mining by techtarget.com states, “Bitcoin mining is the process of verifying new transactions to the Bitcoin digital currency system, as well as the process by which new bitcoin enter into circulation. Bitcoin is a cryptocurrency that is traded for goods or services as payment.”
GMI Computing will begin operations in the next 30 to 60 days. Jon Chadwell, director of the NEDC, announced in June that GMI Computing, based in Taiwan, planned to build a facility to mine bitcoin and other cryptocurrencies. He told The Sun it’s a major investment by the company, which already has operations in Oklahoma, Kentucky, Georgia and Arizona, according to an information packet from the company.
“They will be running around 4,500 computer servers 24 hours a day 7 days a week and need employees who are trained or who are willing to be trained in the operation and maintenance of computer servers and network connections,” Chadwell said in a June email. “These will be very good paying jobs and will produce skills that are easily transferable.”
Now, NEDC is also announcing plans by United BitEngine and Juice Tech.
United BitEngine plans to start in the fourth quarter of 2022. Juice Tech is targeting the first quarter of 2023. Between the three companies, they will employ approximately 45 people at an annual average wage of between $50,000 and $70,000.
Tech Depot, a partnership between the NEDC, the Arkansas Center for Data Sciences and ASU-Newport, is in discussions with all three companies to finalize agreements to provide training for the employees locally. Tech Depot is an IT Workforce Development Center that started in September 2020 to help train residents of Northeast Arkansas in technology skills.
“Tech Depot is working to become the leader in training for maintenance technicians for the cryptocurrency industry,” Chadwell said in a press release issued on Wednesday.
He noted that in addition to the jobs, the City of Newport, Jackson County, the Newport Economic Development Commission, ASU-Newport and the County Jail will all benefit from increase tax collections created by the sales tax collected on the electrical usage at each facility. The increase in budgets will allow for increased infrastructure development in the community, which will make Newport and Jackson County more competitive for future projects.
Chris Murphy from Entergy’s business development team has been instrumental in helping the NEDC understand the process and connect with the companies involved in the mining process, according to Wednesday’s announcement.
“Our partnership with Entergy and our other utility partners are vital when we are working with new industries in emerging sectors like cryptocurrency technology,” Chadwell said. “Entergy and the NEDC are working to manage these developing businesses in such a way that we can maximize the benefit to the local community.”