New York Power Plant Mining $50,000 in BTC a Day

The Greenidge Generation, a New York-based power plant, has set up its own crypto mining operation, generating $50,000 worth Bitcoin every day.

As reported by Bloomberg, the power plant is running a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mining farm with 7,000 ASIC-based crypto mining machines. Spanned across a 650,000-square-foot area, the Greenidge Generation has been mining 5.5 Bitcoins every day for the last few months.

Set up in 1937, the power plant is located in Dresden, New York. Previously it was generating electricity using coal; however, it switched to natural gas-based operation later.

Electricity cost is the primary cost for any crypto mining operation as the process is energy-intensive. Mining firms thus look for areas with cheap electricity costs to set up their operations.

A new business model for the power plants

The New York-based company is circumventing this high electricity procurement cost as it is generating power by itself. The report detailed that the power plant is utilizing 15 megawatts of the generated energy of 106 megawatts, its total capacity.

The profits of the crypto mining industry slumped with a long-reigning crypto bear market. The bull run for a few months, however, is again attracting mining players, setting a record Bitcoin mining Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term.

The mining industry will also face major changes in the coming months with the approach of Bitcoin halving in around May. This will decrease the mining reward from the current 12.5 Bitcoin per block approval to 6.25 Bitcoin.

“We are in a favorable market position regardless of how the halving materializes,” Tim Rainey, a chief financial officer at Greenidge, told Bloomberg. “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.”