According to Bloomberg, the power plant operates a Bitcoin mining farm with 7,000 ASIC-based cryptocurrency mining machines.
The Bitcoin mining farm is spanned across the 650,000-square-foot area. The Greenidge Generation has been mining relatively 5.5 Bitcoin (BTC) on a daily basis for the past few months.
The power plant is located in Dresden, New York. It was once generating electricity using coal, but it later switched to natural gas-based operation.
It’s generally known that the cost of electricity is the major cost in cryptocurrency mining, especially Bitcoin, as the process is energy-consuming.
This alone makes the majority of the mining firms locate areas with cheaper electricity costs for their mining operations.
The Business Model Adopted for the Power Plan
The mining firm based in Ney York is avoiding the high electricity procurement cost by generating power by itself.
Going by the report, the power plant consumes 15 megawatts of the total generated energy of 106 megawatts.
The mining firm’s usual profits dropped with the lasting cryptocurrency bear market. Howbeit, the significant price upsurge that played out for a couple of months attracted miners, setting a record Bitcoin mining hash rate in the process.
Additionally, the mining company is expected to encounter major changes in the coming months, as Bitcoin halving closes by.
This event awaited event will decrease the mining reward from the current 12.5 BTC per block approval to 6.25 BTC.
The chief financial officer at Greenidge, Tim Rainey, while in a conversation with Bloomberg, said, “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.”