Greenidge Generation, a natural gas power plant near the town of Dresden in the Finger Lakes region, announced it had successfully installed a mining farm in its facility. Comprised of nearly 7,000 mining rigs and powered by electricity generated on-site, the facility can mine an average of 5.5 bitcoins every day, roughly $50,000 according to CoinDesk’s Bitcoin Price Index.
An upstate New York power plant has been using some of its own electricity to mine bitcoin on an industrial scale.
Greenidge uses its own «behind the meter» power, the generated electricity it uses itself at the basic cost of production. Kevin Zhang, director of Greenidge’s blockchain strategies, said in a statement that the new initiative would provide potential investors with unique exposure to both the cryptocurrency and energy markets.
The server farm comes as part of an extensive $65 million renovation of the power plant, which includes transforming the plant from coal over to natural gas as well as investing in the electrical infrastructure needed to power the mining rigs.
Following the plant’s conversion to natural gas, with both state and federal approval, in 2017, Greenidge CEO Dale Irwin said the mining operation would complement the «power plant’s unique commitment to environmental stewardship.»
Because costs are already low and predictable, plant owners say they are in a «favorable market position» and believe they will remain profitable even after the halving event takes bitcoin’s block reward down to 6.25 BTC in May.
“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,» said Tim Rainey, Greenidge’s chief financial officer, to Bloomberg.
First established in 1937, Greenidge is now owned by Connecticut-based Atlas Holdings, which helped install the mining rigs in the facility in the space of four months. The plant used to only open at peak times in the summer and winter months; the new mining initiative means it now operates all year round.
The server farm currently consumes 14 megawatts of the 106 megawatts Greenidge has capacity for: that’s enough electricity to power well over 11,000 average U.S. homes.
7 Mining Heavyweights Partner With WEF on Blockchain Sourcing Initiative
Seven major mining and metal companies have inked an agreement with the World Economic Forum (WEF) to develop and deploy blockchain tools to assist with sourcing materials more responsibly and sustainably.
The Mining and Metals Blockchain Initiative – consisting of founding members Tata Steel, Antofagasta Minerals, Eurasian Resources Group Sarl, Glencore, Klockner Co, Minsur SA and Anglo American/De Beers (Tracr) – will investigate the creation of a blockchain solutions for the tracking and tracing of materials along with the associated carbon emissions, the WEF announced on Friday.
The group hopes the effort will allow the pooling of resources and costs between participants, alongside the larger aim of addressing inefficiencies and lack of interoperability in the sector.
“This new initiative is owned and driven by the industry, for the industry. Members will examine issues related to governance, develop case studies and establish a working group”, the WEF said.
Further, the group plans initially to develop joint proofs-of-concept for a shared blockchain platform.
The WEF will provide access to technology and expertise to help the industry participants “better understand the impact and potential of blockchain technology.”
“As a responsible player in the mining and metals industry, we are committed to build a sustainable future”, said T.V. Narendran, CEO of Tata Steel. “We believe enhanced collaboration across the industry to facilitate collective action, leveraging technology to reduce emissions, and conserving the environment is imperative and critical in our journey towards attaining a carbon-neutral future.”
The WEF has become a strident advocate for blockchain applications in numerous areas, releasing a September 2018 study identifying 65 use-cases for blockchain in urgent environmental challenges. More WEF research same month claimed $1 trillion was lying on the table for trade finance once blockchain technology is implemented.
