As per the latest reports, the electricity generated by New York’s hydroelectric dam, the Valatie Falls, can be put to use by the DPW Holdings Inc. for its newly assembled Bitcoin mining farm. The Mining Farm has been announced to become completely operational by the end of this year i.e. Q4 of 2018.
In the month of March this year, a DPW subsidiary, Digital Power Lending, furnished Valatie Falls Hydro LLC with appropriate finances through ‘debt financing’, so as to facilitate the purchase of the 1-megawatt dam.
Another subsidiary, that belongs to the company and deals with ‘crypto mining’, is to lay the foundations of a digital currency mining farm at the site of the dam. As per the plans of the company, the project will be installed using the company’s AntEater miner, a crypto mining device that was brought into existence through the company’s association with Samsung Semiconductors, just this year.
Initially built in the year 1983, the Valatie Falls hydroelectric dam will now produce renewable electricity for the Bitcoin mining farm at a substantially low cost. The complete information, regarding the mining farm becoming fully operational, was provided by the company, DPW Holdings, in an official press release quite lately.
The Company’s CEO and Chairman, Milton “Todd” Ault, III, made a statement in the context, saying,
“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.”
According to him, this particular project, furnishes DPW subsidiaries with a unique opportunity, wherein, they can collaborate and introduce an ‘economic’ and ‘less flawed’ model for crypto mining. He believes that for any crypto mining model, “electricity is by far the largest operational cost factor.”
Additionally, Ault informs us about the working behind the scenes. He says,
“The company’s power solution engineers at Coolisys Technologies, Inc. worked with its cryptocurrency mining engineers and Valatie Falls Hydro LLC’s hydroelectric engineers to retrofit the dam.”
Furthermore, under the current circumstances, the company, through this arrangement, is going to benefit on another very significant aspect. The low cost electricity could possibly tranquilize the impact of the State’s decision of charging higher rates from crypto mining farms.
At the very beginning of 2018, The New York State Public Service Commission, had officially made a statement, wherein it allowed the upstate power authorities to charge higher rates from crypto mining businesses with high density loads. As per the guidelines, the municipal power authorities were to collect tariffs from users with a high density load. The maximum demand limit was set at a decent 300 KW and load density at a 250 KW per square foot.