Hydroelectric Dam to Be Used for Crypto Mining in New York
August 25, 2018 4:36 pm
The historic New York hydroelectric dam, Valatie Falls is being repurposed by DPW Holdings Inc for cryptocurrency mining operations. This will help the sourcing of electricity from the dam to carry out cryptocurrency mining.
The facility is proposed to be fully operational by the fourth quarter of 2018. It will serve as a dedicated source of renewable energy and low-cost power for crypto mining.
The biggest challenge for crypto mining is the amount of electricity it consumes. Notably, the 1 Megawatt Valatie Falls Dam was built in 1983, the dam was acquired by Valatie Falls Hydro, LLC through debt financing that was provided by Super Crypto Mining.
DPW plans to establish a new crypto farm at this location. The company will be using its proprietary AntEater miner which was developed with Samsung Semiconductors in early 2018.
New York is a highly desirable location for cryptocurrency miners who are looking to establish operations in North America. Upstate New York is attractive for low electricity costs.
Coinmint, the world’s largest digital currency center commenced its operations on a 435-megawatt site spread across 1300 acres in Massena, New York. This project started in June 2018 and the company plans to invest an additional $700 million in this venture.
In early 2018, Plattsburgh enforced an 18-month temporary ban on Bitcoin mining in the city. The Public Service Commission (PSC) of New York discussed charging higher electricity rates for cryptocurrency mining companies. As of July 2018, the new rates have been approved by the PSC for the Massena Electric Department.
Given that electricity is the biggest factor when it comes to the overall cost of cryptocurrency mining; Hydroelectricity is turning out to be a great solution for solving the electricity problem.