DPW Holdings has announced the conversion of a hydro dam in Valatie Falls New York to serve a crypto-mining farm. The dam will supply electricity for use in a mining farm within the scenery. The mining farm belongs to a subsidiary of DPW Holdings. The statement reveals a plan to take advantage of low-cost, renewable energy that will power the cryptocurrency mining activity.
The company will install its very own AntEater mining equipment that incorporates chips from Samsung and Innosilicon. The company, through a subsidiary, hopes to substantially cut down the cost that goes into producing one Bitcoin.
The dam is approximately 10 miles south of Albany. According to the reports, it has been operating since 1983. The conversion will be complete by the fourth quarter of this year where mining operations will kick off.
Creating an economically viable environment
Milton Ault, DPW Holdings CEO and chairman, details that the repurposing will go a long way in sustaining their business. He sees the move as an important step in the company’s strategy to create an economically viable environment.
He says, “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. This project provided 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.”
Rising costs of power
The move comes amid a slew of tough regulations that limit power consumption by mining companies. In March, New York State Public Service Commission announced higher rates for crypto mining companies. Many other authorities across North America and Europe have either hiked rates or imposed temporary moratoria on cryptocurrency mining. If the dam becomes operational, DPW will save a lot in power costs.
Interestingly, DPW will become the second company MGT Capital Investments to own a power station. MGT acquired its station in Central Washington.
According to commentators, more companies will consider such a move given the ever increasing cost of power.