A power plant in New York is reportedly mining roughly $50,000 in bitcoin each day
March 5, 2020, 5:57PM EST
1 min read
The Greenidge Generation plant – a power plant based in Dresden, New York – is now producing approximately $50,000 worth of bitcoin daily.
Over the past few months, the 650,000-square-foot power plant has installed approximately 7,000 bitcoin mining machines and is now mining about 5.5 bitcoins every day, according to a press release shared with The Block. Atlas Holding LLC, a private equity company, is the operator of the plant. The facility has a 106-megawatt capacity but is only using around 15 megawatts currently for bitcoin mining.
According to Greenidge, its mining equipment utilizes a "behind-the meter" system, which means that power can be used on-site without passing through the meter. The firm told Bloomberg that this way of using power makes the energy cost lower and more predictable.
“A power plant generating electricity behind the meter to energize its very own mining operation allows investors to tap the profitability of not only cryptocurrency markets but also energy markets," said Kevin Zhang, Director of
Blockchain Strategies at Greenidge.
The plant used to only be in operation during summer and winter since that's when the demand for energy reaches its peak. Right now, however, it is open throughout the year.
Though the bitcoin block reward halving set to take place in May, Greenidge chief financial officer Tim Rainey told Bloomberg that the facility is well-prepared for the upcoming reduction in block rewards.
"We are in a favorable market position regardless of how the halving materializes," he said. "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."