Solar Alliance Energy Inc (OTCMKTS:SAENF) has announced its plans to start Bitcoin mining activities in a former factory situated in southern Illinois. The Canadian firm which focuses on solar and alternative energy projects is being represented by actor William Shatner.
The company reported that it has acquired a warehouse facility measuring 165,000 square feet in Murphysboro Illinois. It acquired the facility for a nominal cost as part of an initiative it has taken with the City of Murphysboro, Renewing the Murphysboro community through Green Energy jobs.
The company plans to create a large solar array on the land and to lease the inside space of the building to cryptocurrency mining firms. Some space will also be reserved for a panel installation training center. The company hopes to benefit from a recurring revenue stream from crypto-mining tenants.
Memorandum of Understanding
Solar Alliance also announced it had signed a Memorandum of Understanding (MOU) with a top tier solar panel manufacturer. This will enable the development of multiple solar-powered facilities designed to host various crypto mining operations.
The MOU will provide steps for the companies to complete their joint development agreement. It will include provisions for panel pricing, sponsor equity provision and a credit facility for funding the creation of crypto-mining projects.
High power demand
Cryptocurrency mining operations use powerful computers to support the unalterable digital ledger known as blockchain. Blockchains depend on miners to securely validate and record transaction through a series of computers. By validating and processing the unalterable ledger, miners create a tamper-proof consensus that enables the blockchain to function. For contributing intensive computing power to perform the task, miners are rewarded with cryptocurrencies such as Bitcoin or Ether.
Data from Digiconomist reveals that the cryptocurrency mining process, mainly Bitcoin mining consumes as much energy as the one required to power more than 6.5 million households in the U.S. Although the number of utility-scale electricity has increased from 334 megawatts (MW) to 13,406 MW in a period of almost 20 years, solar energy panels currently account for only 1% of the total energy consumed in the U.S according to research.
Solar Alliance’s mining facility in Murphysboro is reported to have access to low-cost grid-supplied power. Additionally, it will be complemented by a 3 megawatts solar array.
Shatner is excited about the potential of the cryptocurrency’s mining support through solar energy. He stated that the combination of solar and crypto-mining facilities represents meaningful change.