According to a recent article, a number of cryptocurrency mining companies looking to open operations are showing interest in working with Denton Municipal power (DME), a community-driven nonprofit power provider in Texas. These businesses are looking to power their mining operations with a five-year agreement.
Talks Between Texas’ Denton Municipal Electric and an Unidentified Crypto Miner
The Denton Record Chronicle revealed on February 16 that several unidentified mining companies are looking to collaborate with DME. While these companies’ identities are still unknown, DME verified that talks over leasing have been going on for a year. A possible five-year lease option was also covered by The Chronicle’s Christian McPhate, who noted that Stuart Birdseye, a spokesman for DME, was unable to provide the identities of the prospective miners.
These prospective entrants would emulate Core Scientific, which has already negotiated an agreement with DME to establish a mining operation in Denton, Texas. DME is a non-profit utility that has been in operation since 1905 and provides electricity to 64,000 subscribers only from renewable sources. A paper that McPhate obtained from DME employees states that part of the idea is to build a “modular data center” with a maximum capacity of 20 megawatts (MW).
According to the research, Denton stands to benefit, with revenue projections of almost $4.8 million over the course of the lease. With so many facilities choose Texas for their bitcoin mining activities, the state has become a hotbed for mining operations. The stated number of mining activities in Texas, however, varies somewhat. Approximately 2,400 MW of bitcoin mining is being done at over 30 locations, according to the Texas Blockchain Chamber.
At least 27 mining activities have been identified by the Texas Comptroller’s office, and more are likely to come. Furthermore, according to Foundry USA, the biggest mining pool in the world, Texas contributed 8.43% of the nation’s hashrate at the end of 2021 and 28.50% by July 27, 2023.
How do you feel about Denton Municipal Electric (DME) being courted by the miners who have gone unnamed? Please feel free to express your ideas and opinions in the space provided for comments below.