Greenidge Generation, the world’s first fully-compliant bitcoin mining-power plant hybrid, announced the sale of 106 Petahash of computing power to an undisclosed buyer, as the company continues to roll out services for US institutional investors to benefit from its bitcoin mining operations. Founded in 1937, Greenidge has an in-house gas-fueled power plant and option of biomass as fuel.
The deal was structured and executed by BitOoda Digital, a global financial services platform, along with the execution of a BitOoda Hash contract, a fully-compliant financial product launched in January 2020 allowing for the purchase and sale of large blocks of BTC hash power, the computing power vital to validating and securing the bitcoin network.
Bitcoin mining involves finding blocks through mathematical computations, with machines making thousands or even millions of guesses per second, known as hashes. A Petahash is 1 trillion hashes. Hash rates represent the speed at which a mining machine operates to accomplish finding blocks: 100 hashes per second translates to 100 guesses per second, for example.
This BitOoda product optimizes the settlement and delivery process and enables seamless transacting of hashpower in the over-the-counter markets and for institutional investors. The firms introducing broker and broker-dealer subsidiaries are registered with the CFTC, NFA, SEC and FINRA.
With contracts settled physically and acting like a traditional hedging product, institutional investors purchasing hashpower through Greenidge’s partners benefit from being able to own bitcoin at a discount to the market spot price. Greenidge meanwhile gains from the ability to lock in their profits and receive an upfront source of capital to further expand their operations.