Hydroelectric dam Valatie Falls located in the East of New-York state will turn into a mining farm. The reorganization will be carried out by a subsidiary of DPW Holdings, and the farm itself will start operating in the fourth quarter of this year.
1-megawatt dam built in 1983 was purchased by Valatie Falls Hydro LLC in March, 2018. The company announced its intention to use the miners AntEater, equipped with ASIC bitcoin mining chips developed by Samsung and Innosilicon.
In its announcement, the company stressed that successful adoption of the site for mining needs will allow to produce clean, low-cost and renewable electricity. In its turn, it will become “another important step in the strategy to create an economically viable, self-sustaining cryptocurrency mining business”.
Milton “Todd” Ault III, CEO and Chairman at DPW said: “This project provided a unique opportunity for DPW subsidiaries to collaborate and do innovation to create a new model for cryptocurrency mining, for which electricity is by far the largest operational cost factor.”
The initiative, without any doubt, can be called promising. In addition to the obvious favorable conditions, the green light for miners is lit here by local authorities too. Namely, last month The New York State Public Service Commission approved new tariffs for companies, which include enterprises for the extraction of cryptocurrency. As we wrote earlier, now miners, whose electricity consumption exceeds 300kW, have the right to enter into a service agreement with the local government on individual terms.
However, DPW is not the first company to create its own hydroelectric complex with the purpose of crypto extraction. For example, in 2016, MGT Capital Investments secured a location in Washington with hydropower to support the work of the ASIC machines for mining.