In an announcement published on Nov. 8, Canadian-based DMG Blockchain Solutions Inc. has energised its crypto mining facility. The company stated that it has successfully energized up to 60 megawatts of its 85-megawatt crypto mine.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company. It develops, manages and operates end-to-end solutions to monetise the blockchain ecosystem. Working with its Silicon Valley-based Blockseer division, DMG aims to be the global leader in industrial scale crypto mine hosting. It will offer crypto mining, mining as a Service (MaaS), blockchain forensics/analytics, and blockchain platform development.
DMG Blockchain Solution Power Quest
Initially, on July 26, DMG began the installation of an 85-megawatt substation for crypto mining expansion. According to the company, the implementation of the project was to be on industrial scale with support from electricity providers and the government. Moreover, the company purported that station would increase DMG’s hosting capability by more than 20 times
According to the newly released statement, DMG’s 27,000 square foot crypto mining-as-a-service (MaaS) occupies 34 acres in British Columbia, Canada. Admittedly, the operation is one of the largest in North America. DMG emphasises that the facility uses clean hydroelectric power, and will not affect the power needs of the local community.
For DMG’s project to succeed, and for it has to achieve its goals, it has to get its own grid and not rely on the main grid. Interestingly, the 85-megawatt facility requires power that is enough to power 50,000 homes. Dave Evdokimoff, CEO of Boundary Electric, was amazed by the demand for electricity for crypto mining that he remarked:
“In Boundary Electric’s 71 years of business, we have never seen a demand in the electrical manufacturing industry quite like what is being generated from the crypto space.”
Canada: A Crypto Mining Mecca?
Canada has abundant hydroelectricity and low power costs and has, therefore, become a mecca for cryptocurrency mining. In June, Canadian electricity provider Hydro-Québec recommended new rules for blockchain companies seeking to use their power for mining. The companies will have bid for electricity and quantify their number of direct jobs, the total payroll of direct jobs in Québec and Investments, all per MW.
In the recommendations, Quebec aims to maximise revenue for Hydro-Québec and make the most of the economic spinoffs for Québec. Purportedly, the implementation of the recommendations will push electricity rates down for customers. Upon approval of the recommendations, a 500 MW block will be reserved for the blockchain industry.
Quebec Not Alone
Quebec is not alone in creating special rules and tariffs for crypto miners. New York State regulators have also approved a dedicated electricity rate scheme targeting crypto miners. The state gave permission to 36 municipal power authorities to charge crypto miners highly than other consumers.
New York wants to attract new industry. However, crypto miners are overusing the cheaper power availed by Massena municipal utility making tariffs for other players to rise. Therefore, The Massena municipal utility will consider contracts on a case-by-case basis to protect other utility customers.