Canadian Cryptocurrency Miner to Install 85-Megawatt Power Substation
DMG Blockchain Solutions Inc., a diversified blockchain company, is in the process of installing an 85-megawatt transformer and electric substation for the company's cryptocurrency mining facility, according to a company statement. The new substation is commissioned to be operational by September 2018, with 60 megawatts available for energizing mining rigs.
The Canadian company offers a range of services including Mining as a Service (MaaS),where it manages bitcoin mining on behalf of third parties at scale. The installation of the new substation is expected to “increase DMG’s hosting capability by more than 20 times.”
DMG runs its crypto mining facilities as a hybrid, both serving its clients and using the facilities to mine on its own behalf. The company says this approach allows it to "scale at a faster pace" compared to a "pure mining model," as it can "balance the capital requirements" and investor's ROI with the "steady revenue" generated from the MaaS model.
DMG’s CEO Dan Reitzik and COO Sheldon Bennett spoke to Bitcoin Magazine about the new installation.
“DMG is pleased with its progress toward becoming a leading provider of crypto-mining hosting services in North America,” said Reitzik. “Building the power infrastructure for 85 megawatts in a compressed time frame is a herculean task that truly demonstrates how well the DMG team is executing.”
Bennett highlighted the learning curve the company has had to go through but said they were better for it. According to Bennett, DMG can now scale their mining capacity through a process of “step-and-repeat of our current flagship mining facility.”
The new substation will be connected to the utility power grid, and the company expects it to generate an additional 60 megawatts, when it launches, which will be used to power mining rigs.
EVP for Corporate Development Steven Eliscu added that the combination of “leading-edge mining equipment and access to low-cost power" makes him "optimistic" about the future of the company.