Cryptocurrency Miner Bcause Chooses Headquarters in Virginia Beach, Virginia
The new location offers 84,000 square feet of space that will house its corporate headquarters and the computers and systems necessary to mine digital currency for the global financial market and support other data processing needs of the company.
Bcause LLC has leased a portion of the former Hoffman Beverage building and has an additional 21,000 square feet of space available for future expansion. The company and its customers will make a $64.8 million capital investment for business property, furniture, fixtures, and digital mining equipment and construction.
Fred Grede, CEO of Bcause LLC, said, "Bcause is pleased to locate what we expect will be part of the largest cryptocurrency mining operation in North America here in Virginia Beach. The region has a growing reputation for innovation and technology, and we believe that our state-of-the-art operation will add to that reputation. We have been pleased to work with the City's economic development staff over the last several months.”
“After looking at many facilities across the globe, we were able to find one that met all of our requirements for floor space, proximity to power and access to highly skilled people that a facility like ours requires to be successful,” he added.
The Virginia Beach Development Authority has approved an Economic Development Investment Program grant in the amount of $500,000 based on the company's capital investment. Additionally, the company will be eligible to take advantage of the City's recently reduced business property tax rate for computers and peripherals used in data centers, which is now $0.40 per $100 of 40% of assessed value. The company has also requested additional assistance from the Virginia Economic Development Partnership.
"Virginia Beach is again on the forefront of innovative technology, and we are extremely pleased that Bcause LLC will remain here," said Virginia Beach Economic Development Director Warren D. Harris. "The cryptocurrency market is rapidly expanding, and we anticipate Bcause LLC will be at the forefront of this emerging financial system."
According to City of Virginia Beach officials, Cryptocurrency is a digital asset that uses cryptography to secure transactions, control the creation of additional units and verify the transfer of assets. This type of currency, including bitcoin, is available only in digital form. Bitcoin is a worldwide cryptocurrency and digital payment system that works without a central repository or single administrator.
City officials said Bcause has filed with the U.S. Commodity Futures Trading Commission to become a designated contract market (DCM) and intends to file with the Commission to establish a derivatives clearing organization (DCO). Once regulatory approvals are in place, and trading and clearing begins in derivatives, Bcause will become the only venue to serve as a one-stop shop for all parts of the digital currency value chain. Bcause has laid the groundwork to launch in 2018, initially with its state-of-the-art digital mining facilities, and will launch spot trading in the first half of 2018.
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