Black rock company has said that it has the expertise, technology and resources to host the devices and increase their production level in the long run at a subsidized rate.
Under the terms of a new arrangement, Black Rock Petroleum will host and operate 1 million Bitcoin mining devices across its gas reserves.
Optimum Mining Host Limited Liability Co has struck a binding agreement with the petroleum firm to host and run millions of Bit Miners being transported from China. It plans to deploy all one million Bit Miners across three Canadian gas fields.
“Current production levels are good, and our engineers have looked at the property’s historical production records and analyzed recent reserve evaluations, and we are confident we have the expertise, technology, and resources to materially increase production and, in turn, the cash flow of the site and to host and operate bitcoin miners at an energy cost of circa three cents Canadian per KWH.”
A major flight of miners from China has resulted from the Chinese government’s crackdown on crypto companies and mining.
Some of the bigger mining farms were forced to shut down and either sell their mining equipment on the internet second-hand market or relocate to other countries that provided compliant Bitcoin mining services.
Millions of these mining machines have been exported to other countries as a result of the exodus, with North American countries, particularly Canada and Kazakhstan, becoming increasingly popular.
Due to its abundant electricity supply in rural regions, China was once the world’s Bitcoin mining hotspot, accounting for more than 70% of all mining activity.
However, according to a recent Cambridge analysis, the dominance has been steadily declining, going below 50% by April. Following the miner departure, Bitcoin mining contribution dropped dramatically in May.
Many people believe that the crackdown in May wiped off the majority of mining operations.
In terms of mining contribution, the United States is in second place, but Kazakhstan has just risen to third place.
Because the bulk of these nations have regulated the Bitcoin mining business with restricted energy distribution mostly from renewable sources, the Bitcoin network has become greener as a result of the migration of miners from China.