Bitcoin mining is very popular today, as it offers encryption enthusiasts a reward for the verification of transactions and the addition of a block to the blockchain. However, miners face high costs to achieve the required electrical and computational power. To address this problem, DPW Holdings Inc., a diversified holding company with a growth strategy to capture undervalued assets and disruptive technologies, has found an intelligent solution.
The company announced that its mining operations will be powered by energy generated by a hydroelectric dam near the Valatie Falls, New York.
The DPW crusher, Super Crypto mining, will establish a Bitcoin mine at the dam site and will be powered by the hydroelectricity generated by the dam itself. The initiative should start in the fourth quarter of 2018, as construction work near the Valatie Falls will be completed at this time. The hydroelectric dam, originally built in 1983, will produce low-cost and renewable electricity for the mining company.
Milton Ault III, CEO and president of DPW Holdings, said:
"Our happy reuse of the Valatie Falls dam will provide clean, low-cost and renewable energy to the future co-located mining company of Super Crypto. another important step in our strategy to create an economically viable and self-sufficient mining business in cryptocurrency. "
" This project offered a unique opportunity for DPW subsidiaries to collaborate and innovate to create a new cryptocurrency extraction model, for which electricity is by far the biggest operational cost factor. "
The DPW farm will use its own mining equipment, AntEater, developed in January in collaboration with Samsung.
DPW Holdings is not the first company to establish its own hydroelectric structure for encryption. In 2016, MGT Capital Investments secured a position in central Washington with hydroelectric to start a bitcoin extraction operation. The company expected the structure to generate processing power to make ASIC computers work for the mining industry.
The number of encryption companies is growing day by day, which leads to the problem of excessive use of energy, which is why it is essential to regulate this process. Governments around the world are regulating mining encryption by imposing various restrictions on miners.
For example, the Chinese government has practically banned mining activities. Some states in the United States have also taken measures against the crypto-miners. The State of New York has created a new regime of electricity tariffs for cryptocurrency miners, which now pay more than the average consumer. The commissars of the public utility district of Franklin County have taken a step forward and have decided not to accept the requests of the new ministries until they investigate the effects of the increasing density of cryptocurrency mining companies on the supply of electricity in the region.
The use can not be completely eradicated for now, but the hydroelectric mining company can attract cryptic communities closer to solving this problem, as it is a good way to reduce energy costs.