Greenidge Generation Power Plant Becomes Next U.S. Big Mining Farm
Greenidge Generation power plant in upstate New York says it’s mining up to $50,000 worth of Bitcoin every day.
Although it’s only a small percentage of the overall newly minted Bitcoin currently valued at around $16m, it’s yet another mining farm to be announced in the U.S.
The plant, which uses its own energy reserves to mine the Bitcoin, is averaging 5.5 of the 1800 newly minted BTC daily. And a spokesman for the company is saying that they’re hoping to prize away much of the hashrate from China and put the U.S. on the map as serious mining competitor to the Chinese mining plants.
Greenidge has approximately 7,000 mining rigs and is powered by onsite energy. It is already one of the largest mining facilities in the country, and because of the low electricity costs in the area, it is intending to take advantage of the burgeoning industry and profit from Bitcoin’s price volatility.
‘Due to our unique positions 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 Greenidge CFO Tim Rainey.
Greenidge has been around since the late 1930s, but was largely centred around coal and fossil fuels, but around 2014 it was clear the plant wasn’t profitable, and so they took the decision to stop production switch to natural gas.
The switch took three years to complete, but since launching in 2017 as a natural gas plant, it has been doing very well.
Texas Already Established as A Bitcoin Mining Giant
The Greenidge news comes on the back of major news in Texas and how the Bitcoin mining industry is flourishing there. San Francisco-based Layer1, who raised $50m in a Peter Thiel led Series A funding round, recently opened their new plant in Texas.
With Layer1’s new mining farm now up and running and powering 2.5 megawatt containers, CEO ALexander Liegl says it’s only the beginning for Layer1, and that the tech company has ambitions of becoming the main player in the Bitcoin mining industry by capturing at least 30% of the entire hashrate by the end of 2021.
On top of that, Whinstone US Inc., a U.S. developer of high-speed data centers, and Northern Bitcoin AG, a German bitcoin mining firm, announced a partnership to deliver a 100-acre Bitcoin mining farm in Texas.
In a press release, the two firms said the farm would be the biggest Bitcoin mining farm anywhere in the world, overtaking Bitmain’s mining farm in Milam County, Texas.
The mining farm is expected to be the same size as 57 football pitches, and should be fully open by the end of 2020. When open, the mining farm will have the capacity of one gigawatt, which is equal to 1,000 megawatts.
With the investments from companies like Greenidge, Layer1, and even Bitmain’s huge Texas-based mining complex, it seems like more mining companies are opting for the U.S. rather than China. Coronavirus isn’t helping China, but I don’t believe this is the issue.
These firms have had plans to locate and mine in the U.S. long before coronavirus was even a thing. And with cheap electricity in the U.S., a stable(ish) economy and a place open for business, I can only see more of the Bitcoin hashrate moving towards America.
Author: Tommy Limpitlaw