New York Power Plant Sells 30% of Its Bitcoin Mining Hashrate to Institutional Buyers – CoinDesk

New York Power Plant Sells 30% of Its Bitcoin Mining Hashrate to Institutional Buyers – CoinDesk

Greenidge Generation, an upstate New York power plant that’s using proprietary facilities to mine bitcoin (BTC), has sold up to 30 percent of its computing power to institutional buyers.

The firm said in an announcement on Friday that the deal, brokered by BitOoda Digital, proceeded the sale of 106,000 terahashes per second (TH/s) of bitcoin mining power to undisclosed buyers consisting of hedge funds and family offices.

The sale was enabled through the execution of BitOoda’s hash contracts, which allow institutional buyers to get exposure to bitcoin mining without having to go through the process of purchasing and setting up equipment.

At the Bitcoin network’s current mining competition level, 1 TH/s of computing power would be able to produce about 0.00001709 BTC in a day. As such, the deal would give the buyers a daily yield of about 1.8 BTC – worth around $13,000 – in addition to having the corresponding hardware pledged as collaterals.

That said, with the Bitcoin network’s halving event approaching in about 30 days, the total newly minted BTC in 24 hours will be reduced from right now around 1800 units to 900 after mid-May.

Greenidge said in the announcement it benefits from locking in profits and receiving an upfront source of capital to continue expanding its operations. The firm declined to disclose the amount earned in the deal. But major bitcoin
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