Digital currency company to expand in Virginia Beach
Bcause LLC, a privately held data mining and digital currency company, will expand operations in Virginia Beach, moving into a larger, 84,000-square-foot space at 5465 Greenwich Road.
The new location will house the firm’s corporate headquarters and the computers and systems necessary to mine digital currency and support other data-processing needs.
Established in Virginia Beach in 2013, Bcause said in a news release that it is developing the world's first full-stack cryptocurrency ecosystem. This currency, including bitcoin, is available only in digital form.
Cryptocurrency is a digital asset that uses cryptography to secure transactions, control the creation of additional units and verify the transfer of assets.
Bcause says its system will include a digital mining facility, spot market and a pending regulated derivatives exchange and clearing house. 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).
When regulatory approvals are in place and trading and clearing begins in derivatives, Bcause claims it would become the only venue to serve as a one-stop shop for all parts of the digital currency value chain. The company, currently located at 277 Bendix Road, said it hopes to launch spot trading in the first half of 2018.
With the expansion, Bcause plans to add 100 full-time jobs with average annual salaries of $60,000. According to the city of Virginia Beach, the beach resort city competed with Pennsylvania, Montana and Turkmenistan for the digital mining operation.
“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 D. 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.”
The company leased its new space at the former Hoffman Beverage building and has an additional 21,000 square feet of space available for future expansion. Bcause and its customers will make a $64.8 million capital investment for business property, furniture, fixtures, and digital mining equipment and construction.
“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,” Fred Grede, CEO of Bcause LLC, said in a statement. “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.”
The Virginia Beach Development Authority has approved a $500,000 Economic Development Investment Program grant 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 40 cents per $100 of 40 percent of assessed value. The company also has requested additional assistance from the Virginia Economic Development Partnership.