Sangha Renewables, a bitcoin
The mining firm aims to allow renewable energy companies to extract Bitcoin, opened on Wednesday in their solar installation of 19.9 megawatts (MW) in western Texas.
“Until now we have been extremely satisfied with development,” said Spencer Marr, president of the firm, to Coindesk in a statement. “We make the decision to use our own funds to buy an electrical infrastructure of long delivery time last last November, even before closing the agreement, to ensure that we can mining as soon as possible, and that has been worth it.”
“We also have a great team of partners and suppliers, including CSD Energy, Ecodigital, MoNshot Electrical, Fusion Industries, Greenhash and Pro Mining Solutions that have included to make this a success,” added Marr.
While most mining companies focus on acquiring mining platforms and looking for the cheapest electricity contracts to produce Bitcoin, Sangha’s approach is remarkably different: to convince large renewable energy companies to incorporate Bitcoin mining into their own commercial models.
The tone is simple. Green energy projects often suffer a mismatch in production and demand. A wind farm, for example, can generate a lot of electricity on a windy night, just when everyone is asleep and consumption is lower. Instead of selling that surplus electricity with losses, the affected company could light the mining machines of Bitcoin and obtain profits.
The West Texas project is Sangha’s pilot program. For now, Sangha herself has the miner through a series of subsidiaries and buys electricity from the Energy Company, although the energy company can eventually integrate the operation.
The project is expected to generate $ 42 million in revenues in the first 12 months and extract approximately 900 bitcoin in the next 10 years. It will have access to electricity between 2.8 cents and 3.2 cents per kilowatt-hora in a 30-year lease contract, which means that investors can acquire bitcoin with a discount of 25% to 50%.
The construction is expected to close in the second half of July, although unforeseen events can boost that a month, said Marr. Bitcoin mining must begin soon as the construction is completed.
“We hope to commission the project during the summer and use that time to iron any initial sprain,” Marr said. “We order 2% more ASIC on purpose than we needed to give us a margin of error for defective machines.”
With $ 14 million collected so far through capital, partly thanks to the plural energy, which allows medium -sized renewable energy projects to raise funds from investors in the chain, Sangha has ensured 82% of its capital round of $ 17 million for the West Texas project.
“In autumn, we hope to be a well -greased machine and use the intelligent contracting capacities of plural energy to transmit distributions to our capital investors, which are excited about the idea of receiving distributions natively in Bitcoin,” said Marr.
