Getting your own source of electricity for your crypto mining farm is one smart way to avoid paying high prices and the circumvent the bans.
DPW Holdings, a US publicly traded diversified company, will repurpose the hydroelectric dam in Valatie Falls, in upstate New York, to power a cryptocurrency mining farm to be built on the same site.
According to a statement from DPW Holdings, the dam is expected to become fully operational in the last quarter of this year and will provide low-cost renewable power for the crypto mining farm. It will be built and operated by DPW’s fully-owned subsidiary Super Crypto Mining.
The mining facility will use DPW’s proprietary AntEater miner, which was developed in early 2018 in cooperation with Samsung Semiconductors.
“Our successful repurposing of Valatie Falls dam to provide clean, low-cost, renewable power to Super Crypto’s future co-located mining farm is another important step in our strategy to create an economically viable, self-sustaining cryptocurrency mining business,” said DPW Holdings’ CEO and chairman, Milton “Todd” Ault, III.
“This project provides a unique opportunity for DPW subsidiaries to collaborate and innovate to create a new model for cryptocurrency mining, for which electricity is by far the largest operational cost factor,” Ault added. “Our power solution engineers at Coolisys Technologies, Inc. worked closely with our cryptocurrency mining engineers and with Valatie Falls Hydro, LLC’s hydroelectric engineers to upgrade and retrofit the Valatie Falls dam for this exciting new phase of its long-lived operation. We look forward to bringing this innovative new facility fully on-line during the fourth quarter of 2018.”
The Valatie Falls dam is a 1-megawatt facility originally built in 1983, but eventually was disused. The dam was bought this march by Valatie Falls Hydro, with debt financing provided by DPW’s subsidiary Digital Power Lending.
The state of New York is an attractive destination for cryptocurrency miners, thanks to its plentiful and cheap hydroelectric power. However, the industry hit a snag earlier this year, when the authorities raised electricity prices for miners. Other local utility providers in the state, like that of the city of Salamanca, outright banned the commercial crypto mining activities in Salamanca’s “electric service area”.