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Bladetec, a British supplier of computer hardware, recently revealed plans to build a Bitcoin farm in the south-east of Great Britain. The project called "Third Bladetec Bitcoin Mining Company Ltd (TBBMC)" aims to raise 10 million pounds or about 13.9 million dollars from investors for building and running a farm in the next two to three years. Developers then plan to sell the mined coins as well as mining equipment to ensure return on investment.
The founder of Bladetec, John Kingdon, claims that investors do not risk losing money. According to his calculations, the sale of the equipment itself would bring profit. It is not known whether he took into account such factors as the reduction of equipment prices and the increase in mining costs, which requires more electricity and computing power each year. TBBMC expects a return on investment to follow one of four scenarios depending on the value of Bitcoin over the next two years. Scenarios range from an annual fall in prices by 40%, to an annual price increase of over 50%.
Founded in 2002, Bladetec provided IT support, supply and consulting services to institutions such as the British Ministry of Defense, NATO and National Grid. TBBMC will be the first Bitcoin mine in Europe financed by investors in a limited liability company protected by UK law.
According to the project, TBBMC will cover over 325 square meters in three locations in London, Surrey and Suffolk. Considering the high mining price of one Bitcoin in the UK, which is reportedly around $ 8,400, most of the funds raised will be absorbed by energy costs, as the company plans to extract 1280 Bitcoins.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has retraced over 38% of the last leg up and made a local low at the level of $8,248. The intraday technical resistance is seen at the level of $8,677. The key level to the upside is still seen at the level of $9,134 and in a case of a further rally higher, the next target is seen at the level of $10,000. Nevertheless, only a sustained break out through the golden trend line would change the current bias from neutral to bullish with a target at the level of $11,937 minimum.
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