In a rare media tour, Bloomberg reporter Tom Mackenzie and Quartz photographer Aurelien Foucault were granted access to Bitmain Technologies' largest Bitcoin mining facility located in the SanShangLiang industrial park in Ordos, Inner Mongolia. This marks one of the few times a confidential mining operation has been opened to the press.
The Facility: 25,000 Miners Running 24/7
The warehouse stretches across a vast area, housing approximately 25,000 Antminers, mostly the S9 model. The machines operate around the clock, producing roughly $250,000 worth of Bitcoin daily. In addition to Bitcoin mining, one section of the facility is dedicated solely to Litecoin mining, showcasing Bitmain's multi-coin strategy. The mining revenue far exceeds operational costs, with daily electricity expenses hitting only $39,000 due to cheap local power rates.
Local Workforce and 'Ghost City' Setting
The mine employs about 50 workers, most of them local residents from Ordos. Ordos was once a booming coal town but now has large abandoned government projects, earning it the nickname 'Ghost City.' Employees live in dormitories within the warehouse to ensure continuous monitoring and maintenance. Bitmain CEO Jihan Wu explained, "In China, the cost to build a mining farm is very low, so when people make the decision to build a farm they can do so very fast, and at a very low cost."
US Expansion and IPO Plans
Bitmain is not limiting itself to China. Jihan Wu revealed that the company is investing over $200 million to expand operations in the United States. The move is seen as a hedge against regulatory risks and a step towards a potential IPO. Bitmain currently serves over 20,000 customers and is valued in the billions. The US facility will allow the company to tap into stable energy markets while positioning itself for greater global influence.
Jihan Wu's Bold Price Prediction
During the interview, Wu made a striking forecast: “Bitcoin’s price will go up to $100,000 in about five years.” At the time of the interview (August 2017), Bitcoin was trading around $4,000. Wu's prediction was considered extremely bullish but has since proven prescient as Bitcoin later surpassed $60,000 in 2021. He attributed this to increasing adoption, institutional capital inflows, and global liquidity expansion.
Bitmain's Mongolian mine represents a microcosm of China's dominance in cryptocurrency mining. As the industry evolves, the company's strategic shifts—from domestic cost advantages to overseas expansion—will continue to shape the landscape of digital asset mining worldwide.