Wyoming’s Bitcoin Mining to be Powered by Publicly Traded Utility Company
- The Wyoming Public Service Commission approved the Blockchain Interruptible Service tariff in 2019.
- Black Hills Corp. is now able to provide power for mining operations.
As the demand for Bitcoin and other cryptocurrencies continues to grow, so does the need for energy to power the mining operations that create them. Black Hills Corp. is now able to provide that power, thanks to its new agreement with a Wyoming-based bitcoin mining operation.
This is the company’s first such agreement, made possible by its Blockchain Interruptible Service tariff, which was approved by the Wyoming Public Service Commission in 2019. Through this deal, Black Hills Corp. will help ensure that the cryptocurrency market can continue to grow and thrive in the years to come.
In the event of a power outage, customers who are part of the tariff will receive a $2 credit adjustment per kilowatt-hour. This agreement is similar to the relationship between Texas-based crypto miners and the Electric Reliability Council of Texas (ERCOT). Under the terms of the tariff, utilities have the discretion to determine when power can be disrupted.
The purpose of the tariff is to provide an incentive for customers to allow their power to be interrupted during times of high demand. Doing so helps Utilities avoid having to build additional power plants or make other costly infrastructure improvements. In return for providing this service, customers are compensated at a rate that reflects the value of avoiding these costs.
This is a great opportunity for Black Hills Energy. Not only will they be able to provide a large amount of electricity to the new mining operation, but it will also be a significant publicity boost. This will be one of the largest mining operations in Wyoming and will certainly attract attention from all over the state.
Black Hills Energy has been working hard to expand their business into new markets and this is just another example of their dedication to growth. Providing power to such a high-profile project is sure to bring them new customers and make them even more well-known throughout Wyoming. It’s an exciting time for the company, and we can’t wait to see what they do next.
The deal is notable not only because it represents a shift in how bitcoin mining operations are powered but also because it could help increase demand for renewable energy among cryptocurrency miners. Many miners have been criticized for their high energy consumption and resulting carbon footprint. However, suppose more miners begin using renewable energy sources like Black Hills Energy’s wind and solar farms. In that case, it could lead to increased investment in renewable energy infrastructure and help reduce greenhouse gas emissions associated with Bitcoin mining.