The former aluminum smelter Alcoa signed an agreement with the mining company Coinmint to establish one of the world’s largest centers of crypto-mining in New York State. The aluminum processing and smelting company Alcoa has signed a 10-year lease, including renewal options.
Although bitcoin prices have recently been less favorable, Coinmint is unshakable and said on Tuesday that they are moving ahead with their plans to invest up to $700 million in their new facility and that it can attract over 150 new jobs to the city of Massena and the surrounding area.
World competition in the mining of cryptocurrency sector is tough. The greatest costs for mining companies come from the electricity needed to power and cool the equipment used in the mining process. A large facility for the cryptocurrency mining of this caliber in the United States is already at a disadvantage compared to cheap electricity produced in countries such as China where most of the bitcoin mining in the world is produced.
Coinmint remains confident in its plan, as stated by their CEO Prieur Leary:
“As long as the bitcoin network exists we anticipate mining to be profitable. We’ve developed a process to get an edge in the market.”
Coinmint has already signed an agreement with the New York Power Authority and the New York Independent Systems Operator to access 435 MW of clean hydroelectric power from the St. Lawrence River. The cooler climate in the region also gives Coinmint the incentive to create it.