New York Power Plant Mines $50,000 of Bitcoin a Day
A New York power plant turns to Bitcoin mining in a successful bid to increase profitability.
Bloomberg reported on Mar. 5 that a power plant in New York’s Finger Lakes region now mines about $50,000 of Bitcoin (BTC) each day using the electricity it produces.
Atlas Holding, the private equity company that owns the facility, installed 7,000 crypto mining machines at the Greenidge Generation’s 65,000-square-foot power plant in Dresden, New York. The firm pointed out that since it produces the power consumed by the machines on its own, the mining operation is extremely low cost.
An extremely profitable operation
Cryptocurrency mining is extremely energy-intensive. Mining facilities tend to concentrate where electricity prices are the lowest. In this case, the power cost is equivalent to production costs.
Atlas Holding’s mining operation consumes about 15 megawatts of the 115 megawatts of the power plant’s total capacity. In the past, the Dresden power plant used to operate only when there was higher-than-usual energy demand during summer and winter, but now it operates the whole year.
Bitcoin block reward halving is “favorable”
The cryptocurrency community is afraid that Bitcoin mining will become unprofitable for most miners after the block reward will be cut in half in about little over two months. Dave Perrill, the CEO of colocation service for crypto miners, recently told Cointelegraph that the profitability of all but the most efficient mining operations will be greatly challenged after the halving takes place.
Still, the profitability of Atlas Holding’s mining operation is high enough to be safe after the block reward cut. Greenidge’s chief financial officer Tim Rainey said that he expects the operation will stay profitable after Bitcoin’s halving:
“We are in a favorable market position regardless of how the halving materializes. [...] 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.”