Bitcoin mining is a very energy-intensive activity, but that won’t be a problem for Riot Blockchain Inc. This U.S. mining company decided to create its own electrical substation in Texas to obtain higher profits.
On April 27, Riot Blockchain Inc, a bitcoin mining company founded in 2000, announced its intentions to build a 1.7 gigawatt (“GW”) electrical substation in Navarro County, Texas, to meet the electricity demands of its mining equipment without compromising the city’s power grid.
To put things in perspective, a station of this capacity could be enough to supply the electricity consumption of more than 2 million residents and mitigate the emission of 600,000 tons of greenhouse gases per year. Therefore, Riot will have enough energy to power the more than 4 buildings they expect to build in the next two years to install their mining farms.
The substation will be operational by mid-2023.
According to Riot, the project’s first phase should be fully operational by July 2023, providing accommodation for various immersion-cooled mining machines.
The substation project is already underway, and the first phase will kick off with an initial capacity of 400 megawatts (“MW”). It will then be increased by an additional 600 MW through a switchgear located 1,250 feet away from the plant.
Jason Les, Riot Blockchain’s CEO, said that once the expansion is completed, Riot’s developed capacity will total 1.7 GW —an achievement that will catapult the company as one of the largest in the bitcoin mining industry globally.
“Riot’s ability to source such a significant expansion opportunity in Texas exemplifies the Company’s partnership-driven approach with all stakeholders, including the Company’s business partners, ERCOT, and all levels of government, to commit to sustainable economic development.”
In turn, Chad Harris, CEO of Whinstone, said that this expansion was an example of the positive environmental and economic impacts that Bitcoin mining companies could deliver in “underdeveloped regions of America.”
This station will have an initial cost of approximately $333 million and will help generate more than 270 direct jobs in Navarro County.
Is Texas Pro-Bitcoin?
As CryptoPotato reported today, the Texas city of Fort Worth became the first U.S. city to mine bitcoin using three S9 Antminers donated by the Texas Blockchain Council.
This initiative has the backing of Mayor Mattie Parker, who pointed out that energy costs could be mitigated by bitcoins obtained through mining. She also indicated that future investments in this type of activity depend heavily on an in-depth evaluation that will take place within the next 6 months.
So just like El Salvador with its Bitcoin Law is an interesting experiment that many financial organizations are following, Texas is slowly becoming the guinea pig for the Bitcoin mining industry both american and global.