CALGARY — A new Calgary cryptocurrency joint venture is booting up and digging down.
Oil and gas, cogeneration and technology company Bird River Resources Inc. has partnered with exploration services company Divestco to create a commercial cryptocurrency mining venture using existing infrastructure. Both firms are located in Calgary.
The two companies previously announced a joint cogeneration agreement where they will convert natural gas to electricity. The intention of the two companies is to use the lower prices to enable savings in electricity costs while mining cryptocurrency.
“Electricity is one of the largest expenses in running a commercial cryptocurrency mining operation. Securing low-cost electricity through our joint cogeneration facility provides us with an impressive competitive advantage,” said Bird River Resources director Ty Pfeifer in a statement.
“Furthermore, we are able to utilize Divestco’s existing data centre infrastructure, providing an even further substantial cost advantage in bringing our venture to the forefront of Canada’s cryptocurrency mining industry. Building a similar data centre would cost in excess of $5 million.”
Bird River will pay for all of the capital cost of acquiring mining rigs for cryptocurrency mining operations, while Divestco will provide the infrastructure including a climate-controlled space, racking equipment for up to 3,000 mining rigs, and appropriate personnel.
“We are pleased that the substantial investment we’ve made in our state-of-the-art data centre will be utilized for this joint venture, and that existing IT resources can easily be augmented with expertise to run the cryptocurrency mining operations,” said Divestco president and CEO Stephen Popadynetz.