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NY-Based Power Plant, Greenidge Generation, Now Mines Bitcoin With Its Electricity

Several complaints have been raised over the years about the high rate at which the crypto mining operations consume electricity globally. 

However, a power plant in New York has decided to do things differently as it is currently using the power it generates to mine Bitcoin (BTC)

According to a Bloomberg report today, Greenidge Generation plant has installed about 7,000 Bitcoin mining machines in its 65,000-square-foot power plant facility in Dresden, New York. 

Despite the number of mining machines installed, Greenidge stated that the devices only consume about 15 megawatts of the 115 megawatts of capacity the plant produces.  

Bloomberg noted that the power plant was initially built in 1973 to use coal in its operation, but the plant was later converted to use natural gas in recent months.

Notably, the firm’s new business – mining operation, which is run by a private equity firm, Atlas Holding LLC is capable of producing about 5.5 BTC ($50,000) daily and has been in operation for several months. 

Due to the high power that crypto mining machine uses in its operations, countries have formulated stricter measures to halt miners from conducting their activities. 

One of these measures includes the hike in electricity fees, which has forced most crypto miners to relocate to other cities that have favorable electricity billing.    

The Greenidge mining machines use “behind-the-meter” power, which makes it less expensive. Miners will be required to pay for the cost of production of a token, which can be offset by power-related services, Greenidge said.

The news of the upcoming Bitcoin halving that would see miners reward slashed in half does not seem to bother the firm, as Tim Rainey, a chief financial officer at Greenidge, believes the firm is strategically positioned to make a profit regardless of the outcome.  

“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,” he added. 

Just today, Ripple CEO, Brad Garlinghouse, expressed dissent at the rate BTC mining consumes electricity while describing it as a “massive waste.”



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