Digihost, a US-based cryptocurrency mining company, has announced plans to move part of its fleet from New York to Alabama in an effort to reduce energy costs.
In an announcement on Tuesday, Digihost said its 55 megawatt (MW) facility in Alabama — which the company acquired in June — will be host some of its New York crypto miners, driving down operating costs. According to the mining company, it aims to have 28 MW of hash capacity at the Alabama facility by Q4 2022 and 55 MW by Q2 2023.
Like the others crypto miners Faced with rising energy costs amid a bear market and record heat in parts of the United States, Digihost announced that it sold Bitcoin (BTC) produced in July. As of July 31, the company reported holding approximately 220 BTC and 1,000 Ether (ETH) — valued at a combined $6.8 million — and had no debt.
Canadian crypto-mining firm Bitfarms and Core Scientific have both reported sell some of their BTC holdings in June and July respectively, as part of a debt clearance and capacity increase strategy. Additionally, Riot Blockchain announced in July that it would be relocate some of its miners from New York to Texas in an effort to reduce operating costs.
Many Texas mining companies have reported reduce or stop operations during the summer in the midst of extreme heat. Experts have suggested the state’s energy grid may not be ready to handle demand due, in part, to the power needed for air conditioners, citing greater demand to maintain comfortable temperatures than during the big winter storm of 2021.
Cointelegraph has contacted Digihost, but has not received a response as of press time.