Category Archives: Massena

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One of North America’s Largest Crypto Mining Facilities is Underway

A new 85 MW capacity transfer and electrical substation are currently being constructed in Canada by DMG Blockchain Solutions Inc, making its crypto mining installation one of the largest in North America.

DMG describes itself as a diversified blockchain and cryptocurrency company that works on end-to-end solutions to monetize blockchain’s ecosystem.

The substation, when complete, will come online in September and be connected to the power grid providing 60 MW for energizing mining rigs. The facility is said to be the company’s flagship Canadian crypto mining operation expanding its hosting capability more than 20 times.

Steven Eliscu, executive vice president for Corporate Development, said that such “leading-edge mining equipment and access to low-cost power” augers well for the company’s further development and gives him great optimism for DMG’s future.

As part of this optimism, the company is planning to branch out by building a platform which will ensure “complete provenance of controlled products” through the supply chain, also hoping to become “domain experts” in fields such as agriculture, energy, precious metals, financial services, and manufacturing, as illustrated on the company’s website.

The new facility will be used for in-house operations and for DMG clients engaged in Mining-as-a-Service (MaaS), using faster scaling than a pure mining model with the new installation under construction.

Also, in North America during a subcommittee for the House of Representatives Financial Services Committee on Wednesday, California Democrat Brad Sherman boldly declared his belief that all cryptocurrency mining and trades should be banned across the US. The views were clearly not those of the majority of the subcommittee hearing, however.

A current issue in parts of the US and Canada with the increase in mining is the fear of rising electricity rates in areas that were attractive to miners because of the low energy costs. Worries are that rates are being pushed up for local residents causing jurisdictions to increasingly need to deal with some of these community concerns.

Regulators in New York State, for example, have given approval to a new electricity rate scheme for cryptocurrency miners. In response to the permission given earlier by New York state to 36 municipal power authorities to charge higher rates to crypto miners, the Massena municipal utility has come up with its own plan. A new rate structure will allow crypto miners operating there to negotiate their own contracts to pay a “fair price”, thereby protecting other consumers from inflated rates being enforced because of crypto mining.

 

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Coinmint to Make Alcoa Smelter One of World’s Largest Crypto Mining Centers

Crypto company Coinmint is to take over a former Alcoa aluminum smelting facility in New York State, a move that would make it one of the world’s largest cryptocurrency mining centers.

The smelting plant located in Upstate New York has signed a deal with crypto-mining company Coinmint, to install one of the world’s largest cryptocurrency mining centers in Upstate New York, reports Bitcoinist. The 10-year lease, with options to renew, will give Coinmint the opportunity to invest USD 700 million into its new facility, expected to bring over 150 new jobs to the nearby town of Massena.

Among stiff competition around the world, companies are finding it increasingly difficult to find locations suitable for Bitcoin mining. Iceland has become the mining location of choice due to its cheap geothermal resources, but already miners are using more than the country’s citizens do, and now Venezuelans are turning to Bitcoin mining in order to combat hyperinflation. Mining companies’ biggest costs come from the electricity needed to power and cool the hardware in the process.

The US struggles to compete with countries like China where most of the world’s mining is done, due to cost.  New York state residents and lawmakers have mixed feelings; in March 2018, the town of Plattsburgh, NY, which is only 80 miles east of Massena, issued an 18-month moratorium against crypto-mining operations in the town.

Plattsburg mayor Colin Read has not been impressed with the intended arrival of a new mining center. He regards them as no more than a public nuisance, consuming the town’s power and giving no impetus to local employment prospects; a key factor in mining institutions proposals to local communities. He comments, “The mining companies? They hire a security guard and a guy who comes when something breaks.”

Coinmint remains confident in their plan, as stated by its CEO Prieur Leary: “As long as the Bitcoin network exists we anticipate mining to be profitable. We’ve developed a process to get an edge in the market.”

Coinmint has signed with the  New York Power Authority and the New York Independent Systems Operator, giving it access to 435 MW of clean hydroelectric power from the St Lawrence River. The region’s cooler climate was an incentive to select this region of Upper New York State as a location for the new site.

 

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