Thursday, March 5, 2020

A New York-Based Power Plant Uses Its Own Electricity to Run Bitcoin Mining Machines

A New York-Based Power Plant Uses Its Own Electricity to Run Bitcoin Mining Machines

The Bitcoin mining industry is booming in the Unites States as a New York-based electricity generation plant has set up its own Bitcoin mining operation. The plant uses its own electricity to power the Bitcoin mining machines.

According to a report by Bloomberg published on March 5, a private equity firm Atlas Holding LLC has installed some 7,000 crypto mining machines at the plant. This power plant named Greenidge is located in in New York’s Finger Lakes region. The 65,000-square-foot facility was built in 1973 as a coal plant and later converted to natural gas.

According to the report, the installed machines can mine about 5.5, approximately $50,000 worth of Bitcoins daily. Atlas Holding told Bloomberg that The machines work off so-called behind-the-meter power, which makes it extremely low cost. The plant uses about 15 megawatts of the 115 megawatts of capacity that the plant produces.

Before the start of Bitcoin mining operation, the plant was used to run during the peak demands. But now the plant will be running for the whole year. Atlas Holding further said, miner around the working are roaming for cheap electricity, but at Greenidge, power costs were already low, just costs of production, which can be offset by power-related services.

While Bitcoins miners are thinking about the next Bitcoin Halvening expected to happen in May, the plant owners are saying that they are not going to be affected much.

Tim Rainey, chief financial officer at Greenidge power plant, commented:

We are in a favourable market position regardless of how the halving materializes. Due to our unique position as a co-generation facility, we are able to make money in down markets so that we’re available to catch the upside of volatile price swings.”

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In recent past months, crypto mining industry has accelerated its works in an effort to lower the China’s dominance in Bitcoin mining industry where 60% or more of Bitcoin mining operations are located.

As reported by Crypto Economy, in February 2020, PayPal co-founder Peter Thiel-backed bitcoin mining startup Layer1 Technologies started mining operation in West Texas. The startup has developed its own ASIC chips and liquid cooling technology, and also running its own electricity substations in Texas.

Colorado-based crypto mining firm Riot Blockchain has also deployed 4000 new S17 Antminer Pro machines at its mining facility in Oklahoma City.

The post A New York-Based Power Plant Uses Its Own Electricity to Run Bitcoin Mining Machines appeared first on Crypto Economy.


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