Black Hills Energy, a subsidiary of Black Hills Corp, will supply power to a Bitcoin miner in Wyoming under its first “Blockchain Interruptible Service” contract.
US electric utility Black Hills Corp, which provides power to states including Wyoming, North Dakota and Colorado, has signed its first service agreement with a Bitcoin miner, for 5 years.
On Twitter, the company revealed that this is its first contract signed under the “Blockchain Interruptible Service,” approved by the Wyoming State Public Service Commission in 2019.
In this service modality, the electricity company ensures that it will be able to satisfy the energy demand of cryptocurrencies at an industrial level, without adding additional costs to its retail customers.
Black Hills Corp will provide its energy services through its subsidiary Black Hills Energy, in the state of Wyoming, one of the most favorable jurisdictions for the development of the crypto industry today.
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Wyoming expands its Bitcoin mining operations
While Black Hills Corp has not revealed the name of the Bitcoin miner that will be using its services, it did say that it is a new facility that will be “one of the largest mining operations in Wyoming.”
The new Bitcoin mining facilities will be located in the city of Cheyenne, the capital of Wyoming, and will require a total of 45 megawatts (MW) of electricity, with the option to expand the service up to a maximum of 75 MW, Black Hills Corp reported in a statement. Press release.
These new facilities are expected to come into operation in the fourth quarter of this year.
Cryptocurrencies and their important role in the development of Wyoming
Black Hills Corp. CEO Linn Evans and Black Hills Energy Vice President of Operations Mark Stege expressed their excitement about the new electric rate option they are offering to cryptocurrency miners in Wyoming, which is in line with the state’s plans to become a major hub for crypto industry innovation.
According to Evans, his company wants to serve Bitcoin miners, in order to support the development and growth of the crypto and blockchain industry within the state.
“We are excited to serve this new type of customer and explore the benefits we can provide to other flexible charging customers in the long term.”, Evans said in the statement.
The new Bitcoin mining operations will help strengthen the local economy and boost Wyoming's attractiveness as an innovation hub for miners and the industry at large.
Cynthia Lummis, a US Senator from Wyoming and one of the country's biggest Bitcoin advocates, recently sent a letter, alongside other senators, to the Environmental Protection Agency (EPA) in defense of cryptocurrency mining. In the letter, the pro-Bitcoin senator pointed out that cryptocurrencies and their related mining activities “are essential to the economic future of the United States”.
The energy tariff that Black Hills Corp is implementing, “Blockchain Interruptible Service”, will allow it to supply the electricity necessary to sustain the Bitcoin miner’s operations. However, in times of high demand and stress on the network, Black Hills Corp may disconnect the service to prioritize key areas of the state, as is the case with Bitcoin miners in the state of Texas.
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