Hydro plant from 1897 earns 3X as much mining BTC as selling power to the grid

Hydro plant from 1897 earns 3X as much mining BTC as selling power to the grid

New York’s Mechanicville hydroelectric plant — one of the oldest hydropower generation facilities in the United States — is now host to Bitcoin mining.

The plant is owned by Albany Engineering Corp (AEC), which was asked to restore it by the National Grid in 1986. Jim Besha Sr., AEC’s chief executive, notes that cryptocurrency mining offers triple the profit margins available from selling electricity back to the grid:

Our top trading bots

“We think this is the oldest renewable energy facility in the world that’s still running. We can actually make more money with Bitcoin than selling the electricity to National Grid.”

Besha noted he is content to liquidate the BTC as it comes in, expressing skepticism regarding the crypto asset’s longer-term potential.

Despite the robust profit margins, Besha laments not selling his electricity to be used as power, but a decade of fighting with the National Grid has left him looking to alternative revenue streams.

When AEC was asked to restore the plant, a contract was signed with the National Grid guaranteeing it would purchase power from Besha for 40 years at a discounted rate. However, after AEC received licensing to operate independently in 1993, Besha claims the National Grid reneged on their deal, leading to a protracted legal battle.

After the facility incurred substantial damages from a flood, and later a generator catching fire, the National Grid agreed to give up the plant, pay for repairs, and purchase electricity from AEC at market value in 2003. Despite National Grid giving up its price discount, the profits from Bitcoin mining still dwarf what AEC can make by selling electricity.

Related: Bill banning crypto mining for 3 years dies in NY state assembly

AEC is not the first firm to repurpose a landmark of modern industry to generate cryptocurrency.

In 2018, Bitriver launched a data center in what used to be the world’s largest aluminum smelter in Siberia, which had been constructed by the USSR in the 1960s. The facility, which is now used to mine Bitcoin, is also situated near a major hydropower plant.

That same year, Coinmint announced it had signed a ten-year lease on a 1,300-acre plot of land in upstate New York that had once been used for aluminum smelting to host BTC mining hardware.

Keep reading with Cointelegraph
Pro-Trump MAGACOIN crypto launch marred by website data breach
The launch of a cryptocurrency developed by Donald Trump supporters last week has been marred by a website data breach. According to The Guardian, user...
Shiba Inu (SHIB) DEX ShibaSwap surpasses $1B TVL 24-hours after launch
Dogecoin (DOGE) has proven to the world that even a project that started as a joke can gain value and notoriety in the cryptocurrency space. This phenomenon...
Price analysis 7/6: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, BCH, LTC
The weekend rally in cryptocurrencies was led by Bitcoin (BTC) but this move was not supported by huge trading volumes. According to on-chain analysts at...
Ethereum Climbs 11% As Investors Gain Confidence
Investing.com - Ethereum was trading at $2,065.83 by 04:16 (08:16 GMT) on the Investing.com Index on Monday, up 10.60% on the day. It was the largest one-day...
Bitcoin price falls after Fed shifts interest rate hikes forward amid inflation fears
Bitcoin dropped closer to a key support level and the Dow and the S&P 500 pulled back after the Federal Reserve moved forward its plan for 2 interest rate...
Canadian Bitcoin ETF adds to its holdings despite steep market correction
Demand for Bitcoin (BTC) among Canadian investors has not wavered amid the latest price correction, offering further evidence that market participants are...
Global banking regulator plans to hold consultation on crypto exposure
The Basel Committee on Banking Supervision has said it will be publishing a consultation paper aimed at banks reducing their risk of exposure to crypto. According...
Bitcoin miners back hash rate derivative DeFi project on BSC
A group of Bitcoin (BTC) mining companies have put their weight behind Standard Hashrate and its recently launched TAU Protocol, a synthetic asset platform...
Tom Lee Gave Two Reasons Why His BTC Prediction Didn’t Work Out Last Week
Most of the time it is difficult to predict what is going to happen tomorrow, let alone when it comes to prices of cryptocurrencies in a week. But one...
Tech Investor Palihapitiya Said Buffett’s Wrong, Despite Being His ‘Disciple’
At the end of April, Yahoo Finance published an interview with Warren Buffett, in which the known investment master blasted bitcoin. The Oracle of Omaha...
Mastercard Blames It On Cryptos For Unpleasant First-Quarter Growth Results
This year a range of large American and British banks barred their customers from purchasing cryptos using their credit cards. That has been done in...
Novel Implementation: Bitcoin Cash To Upgrade Its Protocol In May
A little bit more than in a month Bitcoin Cash, altcoin which got executed from the “king” BTC last year August, is going to experience its own fork. However,...
Crypto Bull Tom Lee Predicts a Massive Bitcoin Sell-Off Before US Tax Day
This year tax deadline for all Americans is set on April 17, and there is high feasibility that before this day there will occur all-out vending of cyber-assets...
The Developers Of The MonteCrypto Game Will Give One Bitcoin To The First Winner
The first player to play the new video game MonteCrypto: The Bitcoin Enigma will receive one bitcoin as a reward. The game is scheduled for release on...
Worthy Blockchain projects According To Forbes
The edition of Forbes already drew attention to the crypto-distribution by its publication of the rating of the richest people in the cryptocurrency world....