Riding the Mining Craze | New York Power Plant Installs 7,000 Mining Rigs, Produces 5.5 Bitcoins Daily

A natural gas power plant in the Finger Lakes region of New York has built its own Bitcoin mining operation, taking advantage of the low electricity costs provided by the power plant. It is now generating approximately $50,000 worth of cryptocurrency per day.

• Power Plant Bypasses "Electric Companies" to Supply Electricity Directly, Significantly Reducing Mining Costs
• 7,000 Bitcoin Mining Machines Mine 5.5 Bitcoins Daily

The mining operations are led by holding group Atlas Holding, with its power plant Greenidge Generation established in 1937, located in Dresden, New York. Originally a coal and gas plant, it has been transformed into a natural gas power plant.

Atlas Holding installed approximately 7,000 Bitcoin mining machines in the power plant a few months ago, currently mining about 5.5 Bitcoins per day. Atlas Holding stated:

These mining machines bypass the costs of intermediaries and are directly powered by the power plant, resulting in extremely low electricity costs.

The report indicates that the power plant produces about 106 megawatts of electricity, of which about 15 megawatts are used for Bitcoin mining. Interestingly, the power plant used to operate only during peak energy demand but now seems to have found a new business opportunity by running year-round.

As Bitcoin is about to undergo its third halving in May, with mixed views on its future market performance, previous reports suggest that for the mining industry directly impacted, the halving of rewards is more like a timed bomb that doubles mining costs.

Clearly, Bitcoin miners will be affected by the halving of rewards in May, but the power plant believes they will still remain profitable. Tim Rainey, CFO of Greenidge, stated:

Regardless of the impact of the halving on the market this year, we are in a favorable position. Due to our unique advantage as a power plant, we can make money when the market is down and profit even more when the market is in high volatility.

Due to the high energy consumption of Bitcoin mining machines, as more machines join the mining industry, the mining difficulty of Bitcoin continues to rise, accompanied by increasing mining costs. Therefore, when establishing a mining farm, miners not only consider legal compliance but also the region's electricity costs as a crucial factor.

At the time of writing, Bitcoin has risen back above $9,000 from its recent low of around $8,600 and has been fluctuating in this price range for several days, currently at $9,162.

Related Reading

• Halving Event May Mark the Beginning of Mining Difficulty for Bitcoin Miners
• Is Mining Difficulty Approaching? Bitcoin Production Halving Will Push Mining Costs Above $10,000

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