The profitability of Bitcoin mining can become a headache in those countries where electricity is expensive. However, there are companies that have sought original solutions for this problem. Such is the case of a United States firm.
It is the Greenidge Generation electric company, located in the Finger Lake region of New York. This company, which previously produced its energy from coal, has now converted this process to natural gas.
According to the Forbes review, after being affected by competition from other plants, the firm was on the verge of bankruptcy. In 2018, they approved starting a pilot plan with two S9s. Two years later, they are one of the largest Bitcoin mining farms in the entire country.
Could Bitcoin mining be the solution to bankrupt companies
Bitcoin mining can, and indeed is, becoming a great opportunity to deal with crisis situations. Thus, it can be verified that it is a strong support for undertakings of any kind, from small premises to large companies that go through problems.
In this way, Greenidge Generation, faced with its problems, decided to approve the start of Bitcoin mining. It was an almost desperate test to avoid a further collapse.
In just two years, this firm went from a couple of ASICs and some GPUs, to mining 20 MW with surplus energy. It should be noted that the electricity service to New York is in the midst of strong competition, forcing companies to lower prices to cover more space.
With the impossibility of competing with other industries, Greenidge Generation, embraced less and less space and a large surplus of energy that they can now dedicate to mining Bitcoin.
Improvements and future plans
According to statements by the CEO of this company, Dale Irwin, at the end of the Bitcoin mining pilot program, it only took 4 months to massify it. In January 2020, they already had large capacity farms.
Furthermore, the company does not intend to stop mining cryptocurrencies with the help of its surplus electricity. By 2021, they ensure that they will use the maximum capacity of their facilities, that is, 104 MW.
With this process, the company is seen as a “hybrid” that provides electricity and mining services. Currently, some 9,000 state-of-the-art Bitcoin mining machines operate.
Irwin explains that “Without Bitcoin mining, the company would not have had the possibility of providing a high capacity service and maintaining sources of employment”.
Recently, in Crypto Trend, an article was published on the leading role of Bitcoin mining in sectors of the micro economy. All this makes the thesis that cryptocurrencies are one of the best investments, can be correct.
A unique initiative
Although not everyone has an electric company to maintain their farms, this does not make access to it a limitation. There are countries where electricity is affordable for small investors.
Some of these nations are China (in winter time), some countries in Eurasia, Croatia in the Balkans, and some countries in South America. In these nations, important sectors of the middle layers of the population are engaged in Bitcoin mining with their own equipment.
Data to take into consideration
- The Greenidge Generation company, currently mine 20 MW. By 2021, it plans to use its full capacity (104 MW) in this business.
- In 2018, the firm was on the brink of collapse in the face of competition, so it decided to explore cryptocurrency mining.
- Now, in 2020, the company has more than approximately 9,000 state-of-the-art mining machines.
- Greenidge Generation’s earnings have allowed it to stay afloat with electric service and maintain sources of employment in New York.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional content management by the authors of CriptoTendencia.
2- External sources: Forbes.com.