Bitcoin Mining Startup Sangha Raises $42M in Revenue as It Launches Pilot in West Texas
Sangha Renewables, Bitcoin
A $106,546.31 bitcoin mining company that aims to provide companies in the renewable energy sector with the ability to mine bitcoin began construction on its flagship 19.9-megawatt (MW) solar power plant in West Texas on Wednesday.
“We are extremely pleased with the results to date,” company president Spencer Marr told CoinDesk in a statement. “We made the decision to use our own funds to purchase long-term electrical infrastructure back in November of last year, prior to the deal being completed, to ensure we could begin mining as soon as possible, and it has paid off.”
“We also have a great team of partners and suppliers, including CSD Energy, EcoDigital, Moonshot Electrical, Fusion Industries, Greenhash and Pro Mining Solutions, who have contributed to the success of the project,” Marr added.
While most mining companies focus on buying mining equipment and finding the most profitable electricity contracts, Sangha's strategy is different: it aims to convince large renewable energy companies to integrate Bitcoin mining into their business models.
The concept is simple. Green energy projects often face a mismatch between production and consumption. For example, a wind farm might produce a lot of electricity on a windy night — when most people are asleep and consumption is at its lowest. Instead of selling the excess electricity at a loss, the company could potentially activate Bitcoin mining machines and make a profit.
The West Texas project is a pilot initiative for Sangha. Sangha currently owns the mine through a number of subsidiaries and purchases power from a utility, although the utility may integrate the operation in the future.
The project is expected to generate $42 million in revenue in the first 12 months and mine about 900 bitcoins over the next 10 years. It will have access to electricity at a cost of 2.8 to 3.2 cents per kilowatt-hour on a 30-year lease, meaning investors will be able to purchase bitcoins at a discount of 25% to 50%.
Construction is expected to be completed in the second half of July, although unforeseen circumstances could delay the process by a month, Marr said. Bitcoin mining should begin shortly after construction is complete.
“We plan to launch the project in the summer and use that time to iron out any initial glitches,” Marr said. “We've deliberately ordered 2% more ASICs than necessary to account for potential machine failures.”
With $14 million raised so far in equity (thanks in part to Plural Energy, which allows mid-sized renewable energy projects to raise funds from investors on the blockchain), Sangha has secured 82% of its $17 million equity round target for the West Texas project.
“By the fall, we hope to be a well-oiled machine and use the smart contract capabilities of Plural Energy to stream funds to our shareholders, who are excited about the idea of being paid in bitcoin from the start,” Marr said.
Source: cryptonews.net
