It’s tough to miss the cryptocurrency craze that is sweeping the world over, but it is easy to miss a little gem by the name of Blockchain Power Trust (TSXV: BPWR.UN). They aim to become one of the world’s lowest cost and largest cryptocurrency miners. The main reason for their bold statement – they will use 100% renewable energy that it produces itself.
Blockchain Power Trust has several renewable energy production projects in Romania, while being administered in Toronto, Canada.
Romania is a booming tech hub hosting some of the world’s fastest internet connectivity. Moreover, the production of renewable energy there is heavily subsidized by the EU, leading to another revenue stream in the form of EU Green Certificates.
Currently, Blockchain Power Trust have:
- Three hydroelectric facilities
- Two wind parks
- Two solar energy parks
All with a combined installed capacity of 83MW. Annual electricity production is around 144,000 MWh.
Green Certs and Energy Sales
One of the things that we like about the company is that they receive the valuable EU Green Certificates from its PRODUCTION of renewable energy, not its sale.
Income from EU Green Certificates for the first nine months of 2017 was up 49% to $7.2 million, compared to 2016. This removes the risk from the company and guarantees revenues from production.
Looking at Blockchain Power’s latest financials provides further confidence in the Trust as they have had a large increase (67% to $2.3M) in their traditional sale of electricity for the first nine months of 2017.
Blockchain Power Trust is changing the way we view the traditional business model with its unique cryptocurrency strategy, as one of the largest cost for a cryptomining facility is the energy consumption.
Here are some comments on the energy used
Blockchain Power Trust are building an vertically integrated renewable energy-based mining operation. They own their power supply and will be able to mine cheaper than almost all other competitors.
Their ultra-low-cost cryptocurrency mining operation, will have a zero carbon footprint and a combined processing capability of 90.72 PetaHash / Second.
For those not that familiar with Cryptocurrency mining, a hash rate is the speed at which a computer completes an operation in the Bitcoin code. the reward for all that computing power use is a bitcoin. So in essence, the higher the hash rate the easier it is to mine a Bitcoin or another cryptocurrency.
Their full capabilities are 90,720,000,000,000,000 operations per second.
If they were to go full tilt to their operating capacity of ~90 PetaHash / Second, they would mine (at current mining difficulty levels) around 100 Bitcoins a week.
With the current price of ~$17,000 CAD a bitcoin that would equate to $88 Million in Revenue.
Based upon their Blockchain Power’s website photo they plan on using an unique approach to mine called Hash Tank.
It is essentially a self contained sea-can filled with mining devices and a cooling system, which can be transported anywhere in the world. The mining operators just has to plug in water and power connection and start mining.
The best part is that Blockchain Power Trust owns multiple renewable energy sources near the water so they really can just plug and play to begin mining.
Here is a video from one of HashTanks competitors showing how seamless the sea-can mining process is
This is all speculation as Blockchain Power Trust has yet to release any more information on their operations but the fact that they has the same sea-can picture as HashTank’s website leads up to believe that it is their plan of attack.
It seem like the most logical way for them to mine in remote areas where they have their own power and water supply.
This unique approach will put them miles ahead of all the other operations who are building out elaborate facilities with expensive cooling and infrastructure costs. They also recently closed a $43 Million Private Placement and are using the proceeds to build settle a bunch of outstanding debt and also invest in their cryptocurrency operations.
Fortune Favours the Bold
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