Based in upstate New York, a Bitcoin-mining firm has announced the selling of 106 petahash from its computing power bank to an anonymous buyer through a hashpower contract which was settled using Bitcoin.
The deal was enabled by BitOoda Digital which started its operations in January to allow institutional investors to use over the counter services to buy huge blocks of Bitcoin hashpower. Greenidge Generation through its senior financial officer, explained that the fresh instrument offers:
“The same kind of time-tested hedging capabilities seen in traditional commodity markets […] bring[ing] the benefits of clean and energy-efficient bitcoin mining from Greenidge to institutional investors throughout the United States.”
Greenidge power utilizes a pipeline which supplies natural gas to the firm which is used to create the power utilized by its mining facility. The plant generates more than 100 megawatts per hour but at low costs. According to the firm the new set up comes with an opportunity to investors to profit from both the crypto space as well as energy markets.
The fresh contract which is also regulated allows investors to get Bitcoin at a cheaper price compared to the market prices and the instrument has to be physically settled. In other words, delivered through Bitcoin that has been generated from the power plant. The new deal will allow Greenidge to get requisite capital to enhance its mining business.
According to Cointelegraph, Greenidge is an offshoot of Atlas Holding, a private equity firm and recently launched about 7,000 units of cryptocurrency mining equipment in Dresden, New York. Greenidge boasts of a huge power plant which is 65,000 square foot.
Bitcoin halving will happen next month which will see a reduction of rewards offered after mining a new Bitcoin block by 50%. Analysts have argued that miners need to upgrade their mining machines and find alternative sources of cheaper energy as a caution on the expected losses.