Virginia Beach Government Backs Bitcoin Mine With $500K Grant

The U.S. city of Virginia Beach has granted $500,000 to help establish a new bitcoin mine in the area.

AccessTimeIconJan 18, 2018 at 8:45 p.m. UTC
Updated Sep 13, 2021 at 7:23 a.m. UTC

The U.S. city of Virginia Beach has granted $500,000 to help establish a new bitcoin mine in the area.

On Tuesday, the Virginia Beach Development Authority revealed that it was giving the funds to Bcause LLC in an effort to help generate as many as jobs within Virginia Beach. The mine – which is currently under construction but could open as soon as later this month, according to The Virginian-Pilot – is being funded to the tune of nearly $65 million.

The grant is a notable one, demonstrating a kind of convergence between public-sector efforts to boost job growth and the cryptocurrency space. In addition to the funds, Bcause will be eligible to seek reduced taxes on computers and other expenses related to the data center being built.

"Virginia Beach is again on the forefront of innovative technology, and we are extremely pleased that Bcause LLC will remain here," Virginia Beach Economic Development director Warren Harris said in a statement. "The cryptocurrency market is rapidly expanding, and we anticipate Bcause LLC will be at the forefront of this emerging financial system."

Last June, Montana's state government provided a $416,000 grant to a bitcoin mining operation there. As is the case in Virginia Beach, officials in Montana provided the funds in an effort to spur job creation through the development of new data center resources.

Image via Shutterstock

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