Digihost Shifts Crypto Mining from New York to Alabama to Cut Energy Costs

Digihost’s Strategic Move

In a bold move that screams “cut the costs, please!”, Digihost, the U.S.-based cryptocurrency mining company, has decided to relocate part of its operations from the bustling state of New York down to the more laid-back vibes of Alabama. This transition aims to snag lower energy expenditures and promote better operational efficiency.

Facility Expansion Plans

Digihost’s shiny new 55-megawatt (MW) facility in Alabama, which the company acquired back in June, is ready to host its crypto miners. By the fourth quarter of 2022, they aspire to ramp up their hashing capacity to 28 MW, with dreams of reaching the full 55 MW by the second quarter of 2023. Talk about ambitious!

Market Influences on Mining Operations

Like many of its peers, Digihost is navigating the choppy waters of rising energy costs in a sluggish market—cue the dramatic music! In July, the company took a strategic step and sold its Bitcoin (BTC) production, holding on to about 220 BTC and 1,000 Ether (ETH) collectively valued at $6.8 million as of July 31. Even better? They’re strutting around with no debt to weigh them down.

The Bigger Picture: Relocations and Sales

Digihost isn’t alone in this endeavor. Other mining firms like Bitfarms and Core Scientific have also reported trimming down their BTC holdings recently, likely to pay off debts and reinvest in capacity expansions. Riot Blockchain has joined the fray, choosing to pack their bags and move miners from New York to Texas.

Weathering the Heat

The Texas summer has been no friend to miners, leading many to reduce or suspend operations due to extreme heat. The Lone Star State’s energy grid is under scrutiny, with experts warning it may not be able to handle the surge in demand. Apparently, keeping your house cool might be stealing the spotlight from crypto mining during peak climate chaos.

Awaiting Responses

Inquiring minds want to know more about Digihost’s transition! Cointelegraph reached out to the company for comments but—as expected in a world of crypto—didn’t receive a response in time for publication. Stay tuned; as the sun sets on this summer’s turmoil, there may be more to come from Digihost and its new Alabama home.