A power plant in New York is reportedly mining $50,000 worth of bitcoin daily.
The powerplant earlier installed 7,000 crypto mining machines at the Greenidge Generation plant in recent months that can mine about 5.5 Bitcoins per day.
According to the Bloomberg report, The 65,000-square-foot facility located in Dresden, New York, was built in 1937 as a coal plant an was later converted to natural gas. The power plant is run by Atlas Holding LLC, a private-equity firm.
The machines work off “behind-the-meter” power, which makes it cost less, the private-equity firm said. Since fueling crypto mining machines is normally so power consuming, miners have been searching out modest power, for example, hydro power plants. Many met with an unwelcome shock, when those power suppliers raised costs. Yet, Greenidge said it’s capacity costs are unsurprising and low – basically, just expenses of creation, which can be counterbalanced by power-related services.
The plant used to be in activity only during summer and winter since that is the point at which the need for power peaks. At this moment, nonetheless, it is open all year round. The plant has a 106-megawatt limit however is just utilizing around 15 megawatts as of now for bitcoin mining.
In spite of the fact that the bitcoin reward halving is set to happen in May, Greenidge CFO Tim Rainey revealed to Bloomberg that the office is decidedly ready for coming decrease in rewards.
“We are in a favorable market position regardless of how the halving materializes,” said Tim Rainey, chief financial officer at Greenidge. “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.”
Earlier in 2018, the New York Times, had done a report on the soaring establishment of mining power plants in New York. This was met by mixed complaint due to the weight mining had on the city’s power. But some had thought that the miners chose New York because of its inexpensive rate for power.
“The only reason they’re here is this unusually inexpensive rate for power,” Mr. Thomas Recny, the Chief Financial Official at Mold-Rite Plastics said. “But with two guys, they can consume more electricity than a hospital.”