Bitcoin Miners Flock to Kentucky Coal Towns | The BTC Times \ stacker news ~bitcoin

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Bitcoin Miners Flock to Kentucky Coal Towns | The BTC Times www.btctimes.com/news/bitcoin-miners-flock-to-kentucky-coal-towns

11 sats \ 11 comments \ @BTCMiner 31 Mar 2022 bitcoin

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20 sats \ 3 replies \ @2big2fail 31 Mar 2022

the statement "Kentucky State Representative Angie Hatton is hopeful that Blockware Solutions will be able to stabilize the region's steep electricity rates." makes no sense

miners do not decrease power prices as the high price is as a result of decreased production.

miners can provide revenue to areas with low costs ensuring that infrastructure stays current but unless there is a pre planned buildout of more generation there will be no cost reduction especially if they are mining on grid

5 sats \ 1 reply \ @BTCMiner OP 31 Mar 2022

Electric rates are determined from a number of factors, fixed costs, variable costs, profit margin, market demand, and more.

Selling the excess electricity to the Bitcoin mining ops provides revenue such that the organization won't seek to raise rates to cover their costs + profits (or would be denied if they were to attempt to seek an increase).

So yes, adding Bitcoin mining can essentially be a subsidy that either limits rate increases for the other customers, or (less likely) can actually lower their rates.

That's likely what she was inferring.

0 sats \ 0 replies \ @247bf84fda 25 Aug freebie

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0 sats \ 0 replies \ @247bf84fda 25 Aug freebie

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0 sats \ 5 replies \ @BTCMiner OP 31 Mar 2022

Foundry Digital, a subsidiary of Digital Currency Group, states that about 12.4% of the U.S. based hashrate resides in Kentucky.

Blockware Solutions CEO, Mason Jappa, stated that the reason for the company’s choice to build facilities in Belfry was because of the state’s incentive program and pro-mining stance.

Jappa states that he and his company found the perfect combination of political sustainability and low-cost energy that supports the local economy. The town is also in an environmentally safe, sound, and cool which are all ideal attributes for Bitcoin and cryptocurrency mining facilities.

0 sats \ 3 replies \ @BTCMiner OP 31 Mar 2022

Here's another article on Blockware's plans:

The privately held crypto mining and infrastructure company, has built a 20-megawatt (MW) mining facility in Belfry, Kentucky, the first of three planned sites in the region.

The data center will allow customers to co-locate their mining rigs and has been testing with select clients since January, according to a press release. The facility’s power capacity could also be expanded to as much as 75MW.

“Kentucky was the first state, in my opinion, in the United States to pass a House and Senate bill that actually incentivized bitcoin miners with tax and other initiatives,” Jappa said.

Blockware doesn’t provide its power costs but according to the Global Energy Institute, in 2020 average retail electricity price in the state was $0.0856 per kilowatt hour, compared to $0.0858 in Texas and $0.149 in New York.

Blockware Solutions Builds 20MW Bitcoin Mining Data Center in Kentucky https://www.coindesk.com/tech/2022/03/29/blockware-solutions-builds-20mw-bitcoin-mining-data-center-in-kentucky

0 sats \ 1 reply \ @BTCMiner OP 31 Mar 2022

Where are all the miners? Check out the most updated % each state has of Foundry USA Pool's US-based hashrate. We aim to provide trusted and transparent data within our industry at every turn.

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