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A recent viral video has revealed the existence of a Bitcoin mining farm in an empty Melaka mall.
Back in 2009, the introduction of cryptocurrency barely caused a ripple. Now in 2024, Bitcoin is on the rise again, and there are people creating massive cryptocurrency mining farms to capitalise on it.
A video showcasing one such Bitcoin mining farm recently went viral on social media. Originally posted by a TikTok user named @koocester, the video reveals Bryan Zhou, the founder of Frontier Digital Asset Management, running a Bitcoin mining farm inside an empty shopping mall.
This Singaporean built a Crypto farm in a ghost mall
Editor’s note: Although the video is no longer available on @koocester’s page, it has been shared on various other accounts on social media.
In the video, Bryan gives a tour of his mining farm, showing different sections that aid the mining process. The first section he shows contains all the servers used for mining, surrounded by air filters to keep the area clean.
Bryan then shows the control station where the entire mining operation is managed. This room monitors the network and the status of the machines.
There are 500 machines in the server room, each contributing to the mining operation. Another section features ventilating fans to expel heat, ensuring the servers remain cool.
Astonishingly, 90% of the mall’s electricity is consumed by the mining farm, driving the electricity bill up to an eye-watering USD 200,000 (RM 940,174).
Bryan attributed the mall’s emptiness to the COVID-19 pandemic, which forced many vendors to shut down and leave. He also claimed this is the largest commercialized cryptocurrency mining farm in Malaysia.
The electricity bill is over RM 900,000 per month
Bryan revealed that setting up the mining farm cost a staggering RM2.5 million.
Bitcoin mining rigs are essentially high-powered computers specialised in making the complex calculations needed to mint new Bitcoin. According to Bryan, Bitcoin mining is essentially the process of confirming transactions to add them to the blockchain.
He added, “Let’s say, if I wanted to transfer my Bitcoin to someone else via a cryptocurrency exchange like Kucoin, these computers are the actual hardware that verifies the transaction so that it’s real. Once verified, a new block is added to the chain. This is how we get rewards in Bitcoin.”
While a single computer can validate a Bitcoin transaction, a mining farm with many computers running 24/7 significantly increases the potential income. In order to make the entire enterprise worth it, hundreds of bitcoin mining rigs are needed.
The mining farm generates a whopping RM1.7 million a month
Incredibly, Bryan’s mining farm allegedly can generate about USD 360,000 (RM 1.7 million) per month, producing 6 Bitcoins monthly. These rigs, installed in phases starting in Q4 2021, initially mine Bitcoin, with potential for alternative coins in the future.
As the founder of Frontier Digital Asset Management, Bryan’s company has partnered with Singapore-listed Hatten Land Ltd to operate at least 1,000 cryptocurrency mining rigs within Hatten Group’s properties in Malaysia.
Frontier handles the installation, operation, management, and maintenance of the crypto-mining machines at Hatten Land’s properties. Hatten Land is repurposing its Melaka retail malls for digital activities, leveraging existing infrastructure to lower energy costs.
With Bitcoin priced at USD 67,666 (RM 318,257), the profits are substantial.
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Also read: How I Lost My Retirement Savings Worth RM300,000 After Investing In Triumph FX’s Crypto Token
How I Lost My Retirement Savings Worth RM300,000 After Investing In Triumph FX’s Crypto Token
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