Miner Weekly: Coinmint Vacates 110 MW as NYDIG Steps In?
This article first appeared in Miner Weekly, BlocksBridge Consulting’s weekly newsletter curating the latest news in bitcoin mining and data analysis from TheEnergyMag. Subscribe to receive in your inbox once a week.
Since October, multiple public bitcoin mining companies have announced they will not renew colocation contracts with New York-based bitcoin mining host Coinmint. These developments appear noteworthy when connected with Coinmint’s expansion plans and strategic investment from NYDIG.
Earlier last month, CleanSpark revealed it would not renew a 47-megawatt (MW) colocation contract with Coinmint after year-end. In early November, Gryphon disclosed in a filing that it would also end its 27 MW hosting deal at Coinmint’s Massena site in New York. This week, Bit Digital announced it would not renew its 36 MW colocation contract at the same facility, although it plans to maintain 10 MW at Coinmint’s Plattsburgh site. According to TheEnergyMag’s reports, Coinmint charged these customers a hosting fee of around $0.065/kWh.
In total, over 110 MW of Bitcoin mining power capacity will be vacated at Coinmint’s Massena facility around the end of the year. The timing coincides with regulatory progress in Massena, where local officials recently passed bitcoin mining regulations after maintaining a multi-year moratorium that expired in late September. This regulatory progress clears the way for Coinmint to expand its operations.
Soon on October 16, Coinmint executives announced a strategic partnership with bitcoin asset management firm NYDIG during a town hall event at the Massena facility, according to local reports. NYDIG, one of Coinmint’s largest customers, will invest capital to support the expansion of Coinmint’s Massena site.
“We have been looking for an outside company, a capital partner, a strategic partner, in order to execute our expansion project. I’m thrilled to announce that we have found such a partner, and we just recently closed on a transaction with a company that many of you know well. They’re one of our biggest customers. They’re our best customer in terms of industry knowledge and intelligence, hard work. We’re thrilled to announce today that we’re partnering for our future with NYDIG,” Coinmint CEO David Fogel was quoted as telling employees at the town hall event.
Coinmint is currently utilizing 166 MW of its approved 435 MW power capacity at the Massena site, according to Fogel. And 66% of that operating capacity is set to become vacant by early 2025 following the NYDIG partnership.
NYDIG has been actively consolidating Bitcoin mining operations since the bear market of 2022 to scale up its proprietary mining capacity. The firm has acquired miner hardware and mining infrastructure assets from distressed miners to strengthen its position in the industry. Recently, NYDIG acquired Consensus Technology Group (CTG), a Bitcoin mining company with operations in multiple states and a total capacity of 120 MW.
Regulation News
- Court Sides with Greenidge, Invalidating DEC’s Denial of Bitcoin Mining Permit – TheEnergyMag
- Court Orders New Review of Digihost’s Power Plant Deal in New York – TheEnergyMag
Hardware and Infrastructure News
- Compass to Energize 8 MW Self-Owned Bitcoin Mining Site in Iowa – TheEnergyMag
- Core Scientific (NASDAQ: CORZ) and Port Muskogee Break Ground on 100 MW HPC Data Center – Link
- Core Converts Denton Bitcoin Mine to HPC, Secures Expansion Capacity – TheEnergyMag
- DMG Accelerates Growth with New 5-Megawatt Hydro Miner Purchase – Link
Corporate News
- Bit Digital (NASDAQ: BTBT) Earned More Revenue from HPC Than Bitcoin Mining in Q3 – TheEnergyMag
- BIT Mining settles with DOJ, SEC for $10 million over Japanese bribery charges – The Block
Financial News
- MARA Plans $700M in New Notes to Boost Bitcoin Holdings – TheEnergyMag
- MARA Upsizes Notes Offering to $1B with Zero Coupon Rate – TheEnergyMag
- Canaan Is Raising $30M to Expand Bitcoin Mining in Texas – TheEnergyMag
Feature
- Oct Miner Updates, MARA M&A, Mining in Ethiopia, and Block’s Proto ASIC – The Mining Pod
- Are Mining Stocks Overvalued? With JP Morgan’s Reggie Smith – The Mining Pod
