Bitcoin Mining Firm Blockcap follows Tesla, Establishes Store in Austin.

North America-based Crypto mining Firm Blockcap announced the setting up of new offices in Austin, Texas.

The mining company claims that once its new facilities are operational within the Lone Star State’s capital, its hashing power will be approx. 3.5 exahash/ second from a total of 42,000 rigs, reportedly doubling its capabilities. This would represent more than 2% of the hashrate for the entire Bitcoin (BTC) network, as per the blockchain data. However, Blockcap asserts that its total fleet will account for only 1% of the network’s hashing power.

“Austin is our home base from which we will pursue our mission and bring this great city closer to the center of the United States’ blockchain technology ecosystem,” said Blockcap Chair and Founder Darin Feinstein. “We also see the city as an ideal location from which to continue expanding our operations as we grow at both national and international levels.”

Blockcap did not reveal its office location and how many jobs it would create, but Feinstein said it would be "hiring locally." In contrast, in a tweet last month, Musk said that the new Giga Texas location would bring in over 10,000 jobs, effectively increasing the number of employees at the electric car manufacturing company by more than 14%.

Blockcap also referred to electric car manufacturer Tesla setting up one of its “Gigafactories” in Austin during the announcement. Recently, Tesla CEO and billionaire Elon Musk purchased a house in Texas for $3 million on Lake Austin west of the downtown area. Simultaneously, the firm is breaking ground on the Gigafactory on the east side, closer to the Austin-Bergstrom International Airport.

Additionally, some tech companies like Oracle and Hewlett Packard are moving to Austin, causing many to dub the city as “Silicon Hills,” in reference to Silicon Valley. The state capital has become a microcosm of the US real estate market. Many employees of these companies can see all-cash buyers purchasing homes, making them inaccessible to those who can only afford to save only 20% down payment. Musk highlighted Austin’s housing shortage in an April 4 tweet, apparently about Tesla employees relocating there.

In addition to Blockcap and other blockchain firms to the Lone Star State has the support of former Texas governor Rick Perry. He claimed that Texas has “become the premier location for forward-looking industries like blockchain” and that Blockcap would likely lead to job creation and economic growth in the state.

Founded in 2020, Blockcap controls roughly 12,000 mining rigs generating more than 7 BTC. daily, or $416,550 at the time of writing. The company raised over $75 million in two funding rounds led by Off The Chain Capital and Foundry Digital. According to Blockcap, the firm also acquired more than $500 million worth of Bitcoin mining machines.

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