Bitcoin mining power has always been a key factor in the fight for cryptocurrency domination. It is a known fact that whoever owns more Bitcoin mining power, controls a bigger chunk of all BTC available.
Greenidge Generation, a Bitcoin mining power plant in New York, has sold 106 petahashes of BTC mining power to an anonymous buyer, according to the latest news. This large power transfer was a major marker in an ecosystem waiting for the Bitcoin halving in May.
BitOoda Digital brokered an agreement between Greenidge and the unknown partner during its initial launch in January. The main intention of the launch was to buy BTC hash power from big institutions in a legitimate over-the-counter transaction. Sources from within the company said the BitOoda product optimizes institutional investors ‘settlement and delivery process.
An official release from Greenidge further promised a fully regulated, safe and secure means of purchasing Bitcoin for institutional investors who were just entering the space. Tim Rainey, the Chief Financial Officer [CFO] of Greenidge stated:
“Providing the same kind of time-tested hedging capabilities seen in traditional commodity markets, such product brings the benefits of clean and energy-efficient bitcoin mining from Greenidge to institutional investors throughout the United States. We look forward to working with BitOoda and other partners as we continue to scale our mining operations and, through our partners, extend the range of investment options over the coming year.”
The main advantage with the BitOoda contract was that users will be able to own Bitcoin at a cheaper rate than the spot market. With the latest deal, Greenidge will be able to use the upfront capital to expand its mining operations to newer regions. Greenidge’s facility is currently capable of generating more than 100 megawatts of clean energy per hour with access to the Empire Pipeline System.
Sources stated that all the contracts will be settled physically and act like traditional products. BitOoda’s Chief Executive Officer [CEO] Time Kelly claimed that the hashpower contract was created by keeping Greenidge’s mining potential in mind. The company is also in the works to develop a suite of next-gen digital asset-based products to lure institutional investors into the decentralized ecosystem.
The latest mining power purchase was done a month before the Bitcoin halving is set to occur. In May, the world’s largest cryptocurrency is set to go through a process that will reduced mining rewards on the blockchain by half. Some analysts have pointed out that owning efficient mining systems to enable miners to cut losses and make profits. The industry was now waiting with bated breath for some form of price surge after the spread of coronavirus destroyed all semblance of ecosystem growth.