Black Rock Petroleum has signed a Bitcoin mining agreement in Canada. The deal will enable Black Rock Petroleum (BKRP) to host and operate up to one million miners. The machinery required for mining will be brought to Canada from China. The miners will then distribute the machines to three natural gas production facilities in Alberta, Canada.
The first 200,000 units for mining operations will be at the Quirk Creek Gas plant operated by Caledonian Midstream Corporation.
Optimum Mining Host Limited Liability Co (OMH) will cover the electricity costs of the miners and cover the installation, service, update, maintenance and repair of BKRP units.
Both companies will share the workload among themselves in managing the miners’ successful operations. The contract is planned to last for 24 months, with an option to extend it for an additional 12 months. It is planned to purchase 200,000 machines for the first phase. Then another 300,000 machines will be purchased, followed by another 500,000 machines.
Not to be confused with Black Rock Investment Management. BKRP will take ownership of Caledonian Mainstream, an Alberta-based company and resource operator of 14 natural gas wells. When the process is complete, the first 200,000 machines are scheduled to be commissioned.
Black Rock CEO Zoltan Nagy commented on the latest announcement:
Caledonian Midstream, Black Rock is pretty appropriate. As natural gas demand continues to rise in Alberta and North America, and the Quirk Creek property is perfectly positioned to serve these markets. Current production levels are fine and our engineers have looked at production records. Recent reserve assessments were analyzed. We are confident that we have the expertise, technology and resources to materially increase production. Hosting and operating cash-flowing Bitcoin miners at Canadian energy costs of about three cents per KWH.
Renewable energy mining on the rise
While BKRP was trying to enter the Bitcoin and crypto mining industry with its latest agreement with OMH, alternative mining methods began to be sought after the concerns. After the crypto mining ban imposed by China, companies began to look for alternative methods, including renewable energy, to use their mining operations.
Crusoe Energy also recently announced that it will use natural gas to generate electricity for its mining operations. The company said it expects carbon dioxide emissions to drop by half. Compass Mining is also preparing to use nuclear energy for its mining activities. After a 20-year deal with Oklo, the company plans to buy at least 150 megawatts of clean energy.