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TEXXR

Chronicles

The story behind the story

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New York power plant sets up its own Bitcoin mining operation, with ~7K crypto miners, using “behind-the-meter” electricity to generate ~5.5 Bitcoins per day

- Atlas Holdings LLC-owned facility starts mining crypto  — Dresden-based natural gas plant installed 7,000 crypto miners

Bloomberg Olga Kharif

Context & Ripple Effects

Dresden's natural gas plant is the clearest case yet of what began as an influx of Bitcoin speculators chasing upstate New York's cheap electricity in 2018: instead of selling power to miners, owner Atlas Holdings LLC has installed about 7,000 miners on its own side of the meter and keeps the ~5.5 BTC per day for itself.

The move matters because it collapses the middleman — the plant no longer needs a mining tenant or a grid customer to monetize generation, a structure that within a year drew a proposed three-year state moratorium on crypto mining and pushed peers like TeraWulf and Compass Mining toward partnerships with nuclear plant owners seeking cleaner cover.

First-order effects

  • Atlas Holdings converts otherwise merchant-exposed generation into direct Bitcoin revenue, with the plant's own output — not wholesale power prices — setting its margin.

Second-order effects

  • Other fossil plant operators gain a template for reviving marginal assets as mining hosts, which is exactly the dynamic that prompted New York's proposed three-year mining moratorium (the restarted-plant fight became its poster case).

Third-order effects

  • If behind-the-meter mining spreads, energy-to-compute integration forces states to regulate the plant-crypto boundary itself — siting, emissions, and grid-impact rules written for power plants will have to reach the server racks attached to them.

The trend: Power generators are moving from selling electricity to miners toward running compute themselves at the meter, making energy assets the scarce input in crypto infrastructure.

Discussion

  • @crypto Bloomberg Crypto on x
    A power plant in New York sets up its own Bitcoin mining operation, using the electricity it produces to generate about $50,000 worth of the cryptocurrency every day https://www.bloomberg.com/...
  • @alistairmilne Alistair Milne on x
    This was predictable ... all electricity generators have surplus power they can't sell ... until Bitcoin https://twitter.com/...
  • @chrisblec Chris Blec on x
    Will every power plant eventually just start mining? Why wouldn't they, right? https://twitter.com/...
  • @cryptosbatman @cryptosbatman on x
    We will see most power producers mining Bitcoin using their excess power. Why waste electricity when you can mine $BTC? To stay competitive they will have to mine Bitcoin, if not they won't survive for long. What we see here is just the beginning of a new era. #BITCOIN #Crypto ht…
  • @nycsouthpaw Southpaw on x
    In which a man who purchases and burns hydrocarbons on an industrial scale in order to run computers performing useless calculations to accrue credit in an entirely abstract, immaterial commodity brags about his “commitment to environmental stewardship.” https://www.coindesk.com/…