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 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.
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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.
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.”