Black Hills Energy signs deal to power Bitcoin mining in Wyoming

Black Hills Energy signs deal to power Bitcoin mining in Wyoming

Black Hill Energy, a provider of electricity, natural gas and coal, has recently announced that it has struck its first deal to offer power to a crypto-currency mining unit under Blockchain Interruptible Service Tariff by Wyoming. This step was made to lure and keep Bitcoin miners in the region.

The company said that the mining facility will be one of the biggest bitcoin mining operators in the region and is anticipated to be functional by the end of 2022.

Linn Evans, the Chief Executive Officer of Black Hills Corp. said that the company is really thrilled to serve this new type of client and discover the benefits that Black Hills can provide to other flexible load clients over a long period of time.

The company further said that enticing blockchain companies that have high energy needs will provide Wyomingites with various financial advantages on sales and property taxes, and long-term employment.

Shirley Welte, the VP at Black Hills Energy, said that by offering a blockchain interruptible service option, the company is able to fulfill high energy needs of the blockchain industry even without adding cost to the company’s existing retail customers.

As per the agreement, Black Hills Energy will serve up to 45 MW of electric service with an option to increase service up to 75 MW for the new clients in Cheyenne, Wyoming, for 5 years.

However, Bitcoin mining has been a debatable topic in recent years owing to the huge amount of electricity consumed to support the network. High energy utilization hinders the profitability of mining, and adversely affects the environment.

Black Hills Energy is a subordinate of the Cheyenne Light, Power, and Fuel Company, which itself is a part of Black Hills Corporation based in South Dakota. The company serves about 1.2 million clients in eight states including Colorado, Nebraska, Iowa, Arkansas, Kansas, Wyoming, South Dakota, and Montana.

Source Credit: https://decrypt.co/103504/wyoming-utility-inks-first-deal-under-new-blockchain-tariff