The bitcoin mining industry continues to expand as companies are obtaining more megawatts of capacity, building new facilities, and acquiring thousands of application-specific integrated circuit (ASIC) mining rigs. On Friday, the firm Validus Power revealed it has acquired two natural gas power stations in Ontario, Canada, that will become crypto mining facilities. On the same day, the firm Applied Blockchain got a $15 million loan to fund growth and “buildout of its data centers.” While the bitcoin mining industry’s growth has been exponential, at the same time, bitcoin mining operations are making a significant dent toward cleaning up the world’s CO2 emissions.
Applied Blockchain Secures $15M in Credit to Build Out Data Centers
While cryptocurrency markets saw a significant downturn during the last few months, it has not stopped specific bitcoin miners from expanding. For instance, this week, the bitcoin mining company Genesis Digital Assets announced that the firm secured 708 megawatts (MW) in capacity during the first half of 2022. After securing thousands of ASIC mining devices at a discount, the bitcoin miner Cleanspark announced earlier this week that it acquired a plug-in-ready facility with 86 MW of capacity.
On Friday, the bitcoin mining hosting company Applied Blockchain announced that it secured a $15 million loan to continue expansion. “[Applied Blockchain] intends to use the facility to repay its existing debt and provide additional liquidity to fund the buildout of its data centers,” the company noted during the announcement. “The new credit facility doubles our loan-to-value on our Jamestown facility and provides us with additional capital to fund our growth plans and deliver on the increasing demand from our customers,” Applied Blockchain’s chairman and CEO, Wes Cummins, explained.
Validus Power Expands Ontario Presence With Plans to Convert Waste Gas Into Bitcoin With Propriety Clean Energy Technology
While Applied Blockchain got a loan to pay off existing debt and build out infrastructure, Validus Power, a blockchain power solutions firm, announced that the company is building out more data centers in Canada. Validus Power is in the midst of developing two crypto mining facilities in Kapuskasing and North Bay, Ontario, and it has plans for data center construction in Iroquois Falls, Northern Ontario. The company acquired the natural gas power stations from Northland Power in April 2022.
According to Validus, the Iroquois Falls plant is 120 MW and a natural-gas-fired power center. The Kingston location is also a natural-gas-fired power center with 110 MW of capacity. Last October, Validus announced its North Bay Power Plant and it also inked a partnership with Hut 8 Mining Corp. Like a myriad of bitcoin mining firms today, Validus Power also converts wasted gas into crypto.
On June 3, the company wrote about the “Mad Maxx Mobile Power Fleet,” which converts “waste gas into Bitcoin with propriety clean energy technology.” Validus joins Crusoe Energy, Greenidge Generation, Upstream Data, Vespene Energy, EZ Blockchain, and a number of others transforming wasted gas into bitcoin. The expansion of the bitcoin mining industry in 2022 is not only seeing growth, but the technologies behind bitcoin mining operations are helping the environment. The blog post Validus published last June says:
Through the use of propriety and proven technology, Validus Power is able to take undesirable and unusable waste gas created in the oil refinement process and convert it to energy at scale.
What do you think about Applied Blockchain getting funding for expansion and Validus Power expanding operations in Ontario, Canada? Let us know what you think about this subject in the comments section below.
Source: Mining Archives – Bitcoin News
Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies
New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector. Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining […]
New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.
Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining
Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have put forward a new bill introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.
Kazakhstan became a magnet for crypto miners following China’s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation’s financial hub, is in the focus of government efforts to place the country’s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed to open accounts with local banks.
The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.
“The uncontrolled use of electricity by ‘gray’ miners poses a threat to the energy security of Kazakhstan,” the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. “The procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,” she explained.
According to Kazakhstan’s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed into law a bill amending the country’s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.
Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below.
Source: Mining Archives – Bitcoin News