When Steve Daines, who is actually the U.S. junior Senator of Montana, opposed the idea of closing the coal-fired power plants in Rosebud Country, declaring that its closure could probably hurt the growing crypto mining industry in the country, the cryptocurrency industry scored its another first one.
As some reports reveal, the Colstrip coal plant in Rosebud Country is actually scheduled to be shut down by 2027 as a State and Federal governments in the U.S. look to transition toward clean, as well as renewable sources of energy.
Crypto mining takes place where there is available cheap power
Everywhere in North America, as well as all over the world, cryptocurrency mining generally takes place where cheap power is accessible, which is the situation in Montana, but there is one fundamental difference: most of the other crypto mining hubs which have access to affordable electricity make use of renewable energy.
Indeed, mining ventures increasingly flocked to some renewable energy sources in an effort to generate higher profit, as it is the case with the Scandinavian countries, which actually make use of hydroelectric, as well as geothermal energy, or the Pacific seaboard of America and the Sichuan mountain region of China.
But, most of the coal deposits, as well as a few coal-fired power plants in Montana actually supply an abundance of cheap electricity, so this has attracted a growing number of mining farms to the area. As Senator Daines said, this should be encouraged and not stifled, because Bitcoin mining is actually one of the several growth industries with immediate, as well as long-term prospects in the state.
During the U.S. Senate Energy and Natural Resources Committee meeting from recently, Daines said that as the demand for Bitcoin miners increases and the supply is cheap, there is decreasing in reliable energy from coal generation. So this could probably be a threat to the Bitcoin generation’s expansion and an even more significant threat to energy supply and prices for Montana as a whole.
The unique crypto-positive atmosphere of Montana
It is going to be recalled that Montana is now one of the most favorable states for crypto in the U.S., as it offered permission to Bitcoin mining operations before any other state in the country.
Steve Bullock, the governor of Montana, in 2017 has announced that out of a special fund which is meant to stimulate economic activity, as well as boost growth in the state, about $416,000 was allocated to Project Spokane.
Together with the low energy costs, the low temperatures of Montana are also a draw for coin miners that want to save costs on cooling, as ASIC miners, as well as some other related mining hardware, require temperature controls to keep from overheating. Some of the mining companies which have taken advantage of the unique comparative advantage of Montana are CryptoWatt LLC and Bonner Bitcoin.
The facility of CryptoWatt in the town of Butte has an exclusive agreement with the Colstrip coal-fired plant to supply it 64MW, and it is also considerably of the largest consumers of electricity in the state. The data center of Bonner Bitcoin, known as Project Spokane, is located in Missoula, and it is also undergoing expansion to take its total number of mining rigs from about 12,000 to 55,000. This is probably even more controversy for the company, whose neighbors also complained about the noise levels which its hardware produced in the past.
Evaluate the best options
The chief communications officer of CryptoWatt, named Matt Vincent, in one report said that they chose coal for their current power contract, as it was the most competitive on the market for their intents, as well as for purposes at that period.
However, the company has some competitive alternatives for power contracts, and he also expects them to be adequately secured, before the closure which will happen in 2027.
Vincent explained that they are for sure going to continue to strategically, as well as responsibly evaluate the best options for their needs in the future, and they have a lot of confidence that Montana is going to continue to be the best place for them into the future. He said that they consider sustainable options, such as wind, solar and hydro, every bit as a viable for them as coal and they are always going to strive to do what is in the best interest for their company in balance with the communities in which they are invested.
Anywhere in the States, the mining operations in New York may actually benefit from plans to revitalize the Valatie Falls hydroelectric dam. DPW Holdings has spearheaded the restoration process in order to power its crypto mining farm of the subsidiary in the New York State.
In one statement for the media, DPW Holdings said that the project is actually an essential step in creating a self-sustaining cryptocurrency mining business.
DPW Holdings stated that their successful repurposing of Valatie Falls dam to provide some clean, low-cost, as well as renewable power to the future co-located mining farm of Super Crypto, which is another critical step in their strategy for creating an economically visible, self-sustaining cryptocurrency mining business.