Green miner Bitfarms’ production up 50% after China ban, as Compass goes nuclear

Publicly traded North American Bitcoin mining company, Bitfarms, has doubled its productivity this year amid the Chinese crackdown and resultant miner migration.

The Canadian hydroelectricity mining outfit claims to be currently powering an estimated 1.5% of the entire Bitcoin network with more than 99% renewable green energy.

In a July 14 production update, the firm revealed that it had mined 1,357 BTC in the first six months of 2021, adding that this was the largest number of BTC mined in North America as reported by publicly-traded miners.

It has projected the production of more than 400 BTC for the month of July, which would be double the 199 it mined in January, and more than 50% over June’s 365 BTC mined.

Bitfarms, which was founded in 2017, also stated that more than 95% of its production this year, or 1,445 BTC, has been deposited into custody as of July 12.

Earlier this month, Bitcoin experienced its largest difficulty drop in history due to the mining crackdown in China and resultant closure of operations. BitInfoCharts has reported a 42.5% decline in difficulty since late May with more than half of that occurring this month.

This has resulted in Bitfarms producing significantly higher quantities of BTC at a lower cost per unit produced, the report added. The productivity boost did not prevent company stock taking a hit in late June as reported by Cointelegraph.

Bitfarms founder and CEO, Emiliano Grodzki, stated that Beijing’s Bitcoin mining embargo has been good news for the company which has nearly doubled its market share as a result.

“Reports indicate that the ban on crypto mining in China and the exodus of mining rigs seeking new hosting may take an extended period of time to resolve. Bitfarms is well-positioned to take advantage of the significantly improved economic opportunity.”

The company has already begun that process with the installation of 1,500 Bitcoin miners from MicroBT in its Magog, Quebec, data center, adding 120 PH/s of total production in June 2021.

Related: Nic Carter takes aim at claims Bitcoin is an environmental disaster

Compass points to nuclear power

In a separate mining industry development, North American mining and hosting firm Compass Mining has signed a 20-year deal with nuclear fission startup Oklo which will supply the firm with 150 megawatts of energy.

According to Compass CEO, Whit Gibbs, the first Oklo mini-reactors will be deployed in 2023 or 2024 and the costs will be “considerably” lower than the energy sources firm currently uses.

According to the U.S. Energy Information Administration, nuclear reactors do not produce air pollution or carbon dioxide while operating, however, the major environmental concern related to them is the creation of radioactive waste.

Compass is also in talks with the crypto-friendly city of Miami about getting power from the Turkey Point Nuclear Plant according to a Nasdaq report.

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One Of The Oldest Hydro-Power Stations In The U.S. Is Mining Bitcoin

An old hydro-power station in the U.S. has started mining bitcoin to make three times as much money as selling the energy.

Bitcoin is helping increase the profitability of one of the oldest hydro-power stations in the U.S., the Mechanicville plant, as reported by Times Union. After decades of court fights, unused antique machinery, and plenty of restorations, the plant is now back at total capacity, and it is using part of that to mine bitcoin.

“We think this is the oldest renewable energy facility in the world that’s still running,” said Jim Besha Sr., CEO of Albany Engineering Corp., which owns the Mechanicville plant. “We can actually make more money with bitcoin than selling the electricity to National Grid.”

Albany Engineering got involved with the plant after National Grid asked the company to refurbish and operate the facilities in 1986, which were founded on an antique structure. The two corporations then signed a contract in which National Grid would lease the station to Albany and buy the power for 40 years, below market price.

Besha swiftly started repairing the plant and applied for an independent license to operate it, which was only conceded seven years later. Besha would later learn that, in the meantime, National Grid changed its original plans and claimed it would not honor the contract. Besha sued National Grid, and it took ten years to settle.

During the dispute, the plant began to fall apart as the National Grid refused to buy power, and eventually, Albany couldn’t run it anymore. Substantial damage was made, with part of the building having flooded once and a generator catching fire another time. But after the settlement, National Grid agreed to give up the plant, help pay for repairs, and buy its energy at the market rate.

The plant is now back at full capacity, generating power and selling it at market rate to National Grid at 3 cents per kilowatt-hour. Additionally, the ancient facility is currently experimenting with bitcoin mining to increase its profit margins, which allows it to make three times as much money as just selling the energy.

“It’s the best (type of bitcoin mining) because we’re using renewable energy,” Besha said. “We’re just doing it on the side, experimenting with it. We’re buying used servers.”

Furthermore, the Mechanicville hydroelectric plant has now been nominated for landmark status in three different types of engineering: civil, electrical, and mechanical. That, along with the plant’s listing on the National Register of Historic Places and its increased profitability through bitcoin mining, is set to potentially keep the plant working for centuries to come.

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