North Dakota officials are attempting to convince crypto mining companies to locate in the state. They’re doing well so far, with $3 billion already invested and another $3 billion on the way.
North Dakota government officials attended the Bitcoin 2022 conference in Miami to entice cryptocurrency miners to move to greener pastures. They promised the “cleanest cryptocurrency on the planet.”
The North Dakota Commerce Department spent $35,000 on the trip, expecting a return of 20,000 percent or more from its participation in the conference.
According to the department, the state has already secured $3 billion in the crypto investment and is on the verge of attracting another $3 billion in projects.
North Dakota hopes to wean itself off of its reliance on agriculture and oil by luring cryptocurrency mining companies to set up shop in the Upper Midwest state. There are no tax breaks or funding because the state relies on its natural resources.
It is known for its cold, dry weather, which can help to cool down overheated mining rigs. When you combine cheap electricity and promises of the cleanest energy in the world, it’s easy to see why some mining companies want to relocate.
Every year, huge volumes of excess natural gas that is uneconomical to pipe anywhere in the United States are burned off, wasting energy and emitting greenhouse gases.
Miners are increasingly erecting rigs to exploit this byproduct of the oil industry. It’s not only good for the environment, but it’s also good for businesses because they get block rewards and can sell the associated carbon credits.
ND Commerce Commissioner James Leiman stated on the Chris Berg Show on local radio that he wanted to position North Dakota as having the cleanest cryptocurrency on the planet.
“We’ve already figured out how to take carbon — which is considered a global liability for whatever reason — and monetize it six different ways.” Companies and governments are willing to pay a higher price for carbon credits.
“We can take other people’s liability or trash, if you will, and make it our treasure. That’s why North Dakota is a highly specialized location for some of these crypto miners. Plus, there’s a low price of electrons compared to the rest of the country. There’s also access to abundant gas reserves. The sky’s the limit in my opinion for the crypto industry.”
Smaller crypto mining operations have already established themselves in North Dakota’s Bakken oil fields. They run on leftover natural gas that would otherwise have been burned into the atmosphere. While using a byproduct to power miners is a good thing, other countries power their mining industry with renewables.
Norway appears to have world-class Bitcoin mining credentials, with the small Scandinavian country hosting 0.77 percent of Bitcoin’s hash rate while using 100 percent green, renewable energy.
