Hydroelectric Dam in Valatie Falls, NY To Be Restored and Dedicated to Crypto Mining Operation
DPW holdings is restoring and reactivating the Valatie Falls hydroelectric dam to power its subsidiary's crypto mining farm in the state of New York.
DPW holdings is restoring and reactivating the Valatie Falls hydroelectric dam to power its subsidiary’s crypto mining farm in the state of New York.
The dam will be fully dedicated to the mining facility owned and operated by Super Crypto Mining. The farm will have access to a clean, renewable and cheap source of electricity, therefore, giving it a competitive advantage in the country.
The state of New York will see the Bitcoin mining operation up and running no later than Q4 of this year.
DPW Holdings to kick starts hydroelectric powered Bitcoin mining
On Thursday, August 22, DPW Holdings announced that it will repurpose a hydroelectric dam to service its new mining farm.
“Our successful repurposing of Valatie Falls dam to provide clean, low-cost, renewable power to Super Crypto’s future co-located mining farm is another important step in our strategy to create an economically viable, self-sustaining cryptocurrency mining business”
The company announced that it will proceed to use the dam, which is located in Valatie Falls, New York, as the source of electricity for its yet-to-be-built mining facility towards the end of 2018.
CEO and Chairman Milton “Todd” Ault, III said the following about the news:
“This project provided a unique opportunity for DPW subsidiaries to collaborate and innovate to create a new model for cryptocurrency mining, for which electricity is by far the largest operational cost factor.”
The company specified that it will employ its own mining hardware, the AntEater, which it developed in conjunction with Samsung in the first quarter of 2018.
The state of New York versus crypto miners
One major factor that has hindered the growth of crypto mining in many regions the high cost of electricity to power the demanding equipment used for the process.
This problem also applies to New York where there have been frictions between mining companies and the state authorities.
In March this year, the New York state Public Service Commission ruled that power companies can charge higher rates to cryptocurrency mining operations.
The law was passed in order to slow the growing number of mining firms which began to migrate into state’s northern regions in order to take advantage of low-cost hydropower.
The completion of the dam would ensure continuous mining for the company, and could also be a step other mining companies would follow in the future.
New York a crypto mining hub
The relatively cheap electricity in New York has seen many mining firms move into the state at a pace that could transform the state into one of the largest crypto mining locations in the world.
New York may soon be home to the world’s largest bitcoin mining center if the ambitious plans being undertaken by Coinmint fall into place.
In June, a mining company through its subsidiary North Country Data Center, invested an estimated $50 million to convert a 1,300-acre Alcoa aluminum smelting plant in Massena, New York into a mining station.
The new facility, which has a capacity of 435 megawatts, could well become the world’s largest Bitcoin mining center when completed.
Coinmint is transforming an old aluminum plant
Coinmint previously announced its plans to invest up to $700 million in the project, which will create an estimated 150 jobs for residents of Massena over the next 18 months.
Coinmint estimated a deadline of 12 months for the facility to become operational when the announcement was made in June.
Bitmain building in Texas
Barely two weeks before the DPW news, Asian giant Bitmain announced the creation of a complex in Texas into which it would invest $500 million
With the completion of the DPW project, there is a possibility that various U.S. states with cheap and renewable energy will see a rise in the number of mining projects.
While mining operations tend to be thriving in New York, across the border in Canada meanwhile, prospective companies have faced mixed receptions from local authorities. The province of Quebec, just North of the border, has some of the worlds cheapest and most sustainable electricity in the world.