Sanga’s renewable energy, Bitcoin
BTC$106,546.31
The mining company, which aims to enable renewable energy companies to mine Bitcoin, broke the ground Wednesday at a 19.9 megawatt (MW) solar facility in western Texas.
“So far, we are very pleased with the development,” Spencer Mah, the company’s president, told Koindsk in a statement. “We decided to use our own funds last November to purchase a long lead-time electrical infrastructure to ensure that we can mine as quickly as possible, even before the end of the contract.”
“We have a great team of all our partners and suppliers to make this a success, including CSD Energy, Ecodigital, Moonshot Electrical, Fusion Industries, Greenhash, Pro Mining Solutions,” added Marr.
While most mining companies focus on seeking the cheapest possible power contracts for obtaining mining rigs and producing Bitcoin, Sanga’s approach is significantly different. It’s about persuading large renewable energy companies to incorporate Bitcoin mining into their own business model.
The pitch is simple. Green energy projects often suffer from inconsistencies in production and demand. Wind farms, for example, can generate a lot of electricity on windy nights. Instead of selling that surplus electricity, the affected companies could potentially turn on Bitcoin mining machines to make a profit.
The West Texas Project is the Sanga pilot program. For now, Sangha itself owns miners through a series of subsidiaries and purchases electricity from energy companies, but the energy companies are able to ultimately integrate their businesses.
The project will generate $42 million in revenue in the first 12 months and will mine around 900 Bitcoins over the next 10 years. With a 30-year lease, you can access between 2.8 cents and 3.2 cents of electricity per kilowatt-hour. This means investors can get Bitcoin at a discount of 25% to 50%.
The unexpected event may push it back into a month, but construction is expected to close in the second half of July, Marr said. Bitcoin mining should begin as soon as construction is complete.
“We will commission the project over the summer and hope to use that time to resolve the initial twist,” Mah said. “We purposely ordered 2% more of the ASIC than was necessary to give a margin of error for the failed machine.”
To date, $14 million has been raised through stocks. This has enabled medium-sized renewable energy projects to raise funds from investors on-chain thanks to multiple energies.
“By fall, we hope to be a well-oiled machine and leverage the smart contract capabilities of multiple energy to stream distributions to stock investors who are excited by the idea of receiving native distributions in Bitcoin,” Mar said.