What Kind of Clients Seek a Cypto-SaaS Platform?
DENVER, CO – Many would say that blockchain is driving the data center conversation, especially in regions such as the Mountain West, where the bitcoin business is booming. So CapRE’s Second Annual Great Denver Data Center Summit last week featured a panel titled “The Next Chapter: Blockchain, Cryptocurrency and Bitcoin: What are They and How Do They Impact Data Center Design, Construction, Development and Operations?” and the conversation featured a brief Q&A with Arland Whitfield, Chief Executive Officer of Frontier Mining, a provider of turn-key cryptocurrency miners, co-location and mining management services, about what his firm has to offer.
“Arland, you have a SaaS platform,” ventured Moderator Rabin Mahanty, Director at H5 Data Centers. “Joe main street can go there and sign up and say that they want to spend X amount of money, and start mining. So who is using this now? Who is saying, Hey Arland, here’s ten thousand bucks, I want you to mine for me?”
“So what we are doing is finding crypto-currencies,” replied Whitfield. “They have value and they can be traded on exchanges. And a client who comes to us and invests money into a solution will expect a return. So we help advise and configure the machines to run a variety of algorithms and give them a currency they can hold onto and invest and trade. The benefit of mining, instead of just going to an exchange and purchasing a coin, is that at the beginning of a coin’s life, you can mine a lot of coin very efficiently right at the beginning and then you get it for a lower cost basis than when it hits the exchange.”
Whitfield then conceded that the business is, by nature, highly speculative. “I equate it to investing in a start-up, because a lot of these coins are of new technologies that are raising money, testing out a concept, but there’s no actual product,” he related “This is a very new form of investing. For the first time, every person at home can manage their machine’s time, their energy, into a project they believe in and hopefully one day see a return on it, if they don’t see a return on it immediately. I wish that a Z-Cash guy was here right now, because that coin is extremely profitable right now.”
Then, Whitfield intimated another potential use-case for his platform. “In terms of the blockchain part, there is a future where Adobe comes out with a blockchain-type product, and they need to host it somewhere,” he explained. “That’s going to need an intensive, high-density application. So there is a world where you’re not doing it for the monetary gain upfront, but it might give your network more redundancy and self-healing capabilities, and I guess, more security.”
Be sure to check out further perspective on blockchain and bitcoin in previous CapRE Insider Reports:
- “Blockchain vs Bitcoin: What’s the Difference?“
- Frontier Mining’s Arland Whitfield Weighs in on Blockchain vs Bitmining
Banner Photo (L): Arland Whitfield, Chief Executive Officer, Frontier Mining