The next Bitcoin halving event is coming soon, and one natural gas facility in New York has started up a pretty impressive side-hustle in Bitcoin mining to reap the benefits.
Since Bitcoin (BTC) value peaked at $20,000 during the 2017 bull market and became the best performing asset of the last decade, everyone has wanted a [digital] piece of it. It’s unsurprising, though, especially when since its value has increased. 9 million percent since it was developed.
Within Bitcoin’s programming, it has a pre-set number of ‘halving’ events that take place; reducing the number of BTC rewarded to its pool of miners. With added scarcity, comes more demand, and an increased hash rate with more miners vying for rewards.
Bitcoin mining has received some very special attention recently, with a New York-based power plant getting started with its own BTC mining operation. Sounds like a match made in heaven, right? Right! Using the electricity that it generates, the plant can generate $50,000 worth of BTC per day, according to Bloomberg. Entrepreneur, Alistaire Milne tweeted,
This was predictable … all electricity generators have surplus power they can’t sell … until Bitcoin https://t.co/uL7CHZ2L8k
— Alistair Milne (@alistairmilne) March 5, 2020
No More Leftovers: Bitcoin is Converting Surplus Electricity into Instant Money
The private equity firm, Atlas Holding LLC, leads the operation, with about 7,000 mining machines in operation at the Greenidge Generation plant. These machines are capable of mining approximately 5.5 Bitcoins each day.
The facility itself has had a pretty interesting history. Having been built in 1973 as a coal plant, it was later converted to natural gas production and has since become a BTC mining. hub. Because the machine works off “behind-the-meter” power, the cost is predictable and extremely low.
Out of the 115 megawatts that the plant produces, the Bitcoin mining server consumes only 13% of this. Initially, the plant was only running during the times of peak energy demand, during summer or winter, but now it’s operating year-round.
With Bitcoin developers, investors and more, nervously awaiting the eventual supply shock that comes with each halving. This facility is well placed for the coming change in the market, and its CFO knows it. Tim Rainey, the CFO at Greenidge said,
“We are in a favourable market position regardless of how the halving materializes.”
“Due to our unique position as a cogeneration facility, we are able to make money in down markets so that we’re available to catch the upside of volatile price swings.”