Bitcoin crash could take toll on data center providers


Here’s a story I didn’t see coming. Big data center providers may be feeling the reflected pain of the struggling bitcoin cryptocurrency, as Data Center Knowledge reported.

Exhibit A:  a lawsuit lodged by C7 Data Centers against bitcoin miner Cointerra for non-payment of co-location costs.  Data Center Knowledge reports that [company]Cointerra[/company] is countersuing, but in the meantime its operations at C7 are off.  The story lists several other bitcoin miners and which data center providers they use.

The process of bitcoin mining — a way to value the currency — once could be done on a single machine, but got a lot more complex as the market grew. That meant lots of computers using special chips to crunch the numbers. All that heavy lifting requires data center space.  Now, as the value of bitcoin has swooned — today’s price is $197 versus more than $1,000 two years ago — bitcoin miners are…

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