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Alberta may have the potential to become a new crypto hub in Canada
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Stephanie Hughes Canada potentially has a lot to gain from the advancement of bitcoin mining operations. Photo by Chris Ratcliffe / Bloomberg Files Article content
A massive exodus of bitcoin miners from China has been going on since June, when Beijing doubled down on the cryptocurrency crackdown. The efforts consisted of asking local authorities to order energy companies to suspend electricity supplies to bitcoin farms, leaving miners with no choice but to pack their bags for more crypto-friendly pastures.
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The miners, fortunately, did not stay in limbo for long. Many have found new homes in the United States, Russia and Kazakhstan. Since mid-July, Alberta has also been on the radar. That’s when the Nevada-based Black Rock Petroleum Company struck a deal to bring up to a million bitcoin mining machines to three natural gas plants in southern Alberta. .
While no specific timeline was announced by the company, the press release said the company was looking to hold 24-month contracts with the option of extending them. It will begin at the Quirk Creek natural gas plant located southwest of Calgary, where the first 200,000 units would be housed. It is currently operated by Caledonian Midstream Corporation of Calgary, which was acquired by Black Rock in July.
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Brian Mosoff, CEO of Canadian crypto firm Ether Capital and a cryptocurrency entrepreneur, told the Financial Post that bitcoin miners will naturally turn to energy sources at affordable rates.
Alberta is a great place to go, Mosoff said. It really is: can they co-locate alongside another business that gives off energy as a by-product of another service they are performing; or can they make a deal with the government or the local energy company to get that many megawatts at a certain price and lock them in for a number of years. You could do it in Alberta.
Mosoff added that Quebec and Ontario are other hubs that miners could establish and find these kinds of advantages, although Alberta may have the most competitive tariffs for energy.
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Ensuring a constant supply of low-cost energy is a boon to miners, but the deal could also benefit energy companies looking for potentially lucrative business avenues as the pandemic has ended global travel and dampened demand for energy. ‘energy. In addition, governments moving towards more renewable energy sources have put pressure on companies in the fossil fuel sector.
Earlier this year, a idling coal-fired power plant in upstate New York had a new lease of life to continue its crypto mining operations and a coal-fired power plant in Montana expanded to make likewise. Alberta’s energy patch may seek to capitalize on this recent deal.
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According to Mosoff, Canada also potentially has a lot to gain from the rise in bitcoin mining operations, even though bitcoin has a bad reputation when it comes to its carbon footprint.
Canada has an opportunity here to say: We are not going to impose these same requirements and obligations on people who perform proof of mining work or proof of validation of participation and were going to host this activity to come to Canada, did he declare. The advantage here is probably that window in time where we can accommodate these activities and jobs here (and) we can influence what kind of energy they use. You can push them towards more renewable energy.
It may take some time to fully deploy bitcoin mining operations in Alberta. They require strong Internet connectivity and specific skills, and can cover a lot of territory.
However, if regulatory hurdles on the crypto and power generation front are lifted and bitcoin mining finds its way into the province, then Alberta could have the potential to become a new crypto hub. in Canada.
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