California firm forks out $13M for abandoned Intel plant to mine crypto

California-based firm 3G Venture II has reportedly bought an abandoned Intel manufacturing complex in Colorado, where it plans to open a new cryptocurrency mining operation. The owner of the company, John Chen, bought the 30-acre premises for $13 million, according to the Colorado Springs Gazette.

Michael Palmer, a broker with Quantum Commercial Group in Colorado Springs who marketed the Intel property, told the local news outlet that Chen plans to use three buildings totaling about 85,000 feet for the crypto mining operations, while the rest will be open for leasing.

The installed electricity network has been one of allures of the Intel site, according to the report. The complex includes an on-site substation and two separate power feeds, and the new owners reportedly asked the Colorado Springs Utiliteis to increase capacity to the site. Aside from crypto mining operations, the site also offers adequate space for data centers and other companies.

3G Venture II is not the only company in town looking to utilize the cheap electricity in Colorado, several other companies like Progressive Insurance, Walmart and FedEx are also eyeing to set up shop in the area, according to Colorado Springs Gazette.

In 2000, Intel bought the plant form the former Rockwell International Corp. campus at 1575 Garden of the Gods Road for its operation. Later, Intel abandoned the plant after selling its line of computer chips  that they were manufacturing in the plant.

It is unclear if the new company will offer job and financial opportunities to the local community. While speaking to reporters, Dirk Draper, president and CEO of Colorado Springs Chamber of Commerce and EDC, noted that they only started working with Chen after he showed interest in buying the Intel plant. There are no plans to attract similar operations since their focus “is more on the employment side,” according to Draper.

Crypto mining firms are sprouting all around the world. Several weeks ago, Coinmint started its crypto mining operations in New York—specifically, at a former aluminium smelting plant. The firm is reported to have offered 150 jobs to the local community. Mining companies continue to look for favorable mining environments for their operations.