A Bitcoin-mining power institute in upstate New York has sold 106 petahash of its calculating power to an undisclosed buyer using a "hashpower contract" settled in Bitcoin (BTC).

The contract — brokered by BitOoda Digital — get-go launched in Jan with the aim of providing institutional investors to purchase large blocks of Bitcoin hashpower in over-the-counter markets.

On April ten, the main fiscal officer of Greenidge Generation claimed that the new instrument provides:

"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 Usa."

A sweet deal for investors?

The Greenidge power plant uses a pipeline bringing natural gas directly to the constitute, thereby generating the power consumed past its mining facility — upwards to 100 megawatts of free energy an 60 minutes — and lowering its costs. The house argues that this fix-upwardly offers investors a adventure to tap the profitability non but of crypto, merely also the energy markets.

The new, regulated contract enables investors to own Bitcoin cheaper than the marketplace spot price, with the instrument existence physically settled — i.due east. delivered in the Bitcoin generated at the power constitute. For Greenidge, the bargain provides upfront capital letter for expanding its mining operations.

Resources and mining profitability

As recently reported, Greenidge is owned by private equity Atlas Property, which installed 7,000 crypto mining machines at the Greenidge 65,000-square-foot power plant in Dresden, New York.

Given the forthcoming 50% reduction in rewards for mining each block on the Bitcoin network — an effect known as "halving," scheduled for May 2022 — research by TradeBlock has indicated that access to efficient mining equipment, together with cheaper electricity and resources, can help the sector to ward against losses.