Black Rock Petroleum Company has agreed to deploy and operate up to 1 million Bitcoin (BTC) mining machines, with the miners hosted in Alberta, Canada, and sourced from China.
The mining operation, first addressed in a press release issued in July, proposed using three natural gas-producing sites located in Alberta.
With the company entering the Bitcoin mining and hosting business in Canada, Black Rock looks to be in good company alongside publicly traded companies in the space like Riot Blockchain (RIOT), Marathon Digital (MARA), and Argo Blockchain (ARGO), to name a few.
Black Rock Petroleum Partners with Optimum Mining Hosting Service
“We are confident we have the expertise, technology, and resources to materially increase production and, in turn, the cash flow of the site and to host and operate bitcoin miners at an energy cost of circa three cents Canadian per KWH.”
– Black Rock CEO, Zoltan Nagy.
Nevada-based Black Rock Petroleum Company entered into the previously mentioned agreement with Optimum Mining Host, a mining machine hosting company. The contracted term between Black Rock and Optimum Mining is two years, with the option to extend by 12 months with notice.
At the time of writing, only a rough timeline exists for this deal.
The Alberta Deployment Strategy
“The Quirk Creek property is perfectly situated to service those markets. Current production levels are good, and our engineers have looked at the property’s historical production records and analyzed recent reserve evaluations.”– Black Rock CEO, Zoltan Nagy.
The initial 200,000 miners are planned for deployment at a recently announced acquisition by Black Rock, the Quirk Creek Gas Plant. On top of this, the mining firm plans to allocate 300,000 miners to a second site in Alberta. The final allotment of the 500,000 remaining miners has yet to be determined.
Fear, Uncertainty, & Doubt
U.S. bitcoin mining engineer Brandon Arvanaghi went on the record as saying he is skeptical of the astronomical number of miners Black Rock is proposing to install in the previously mentioned Alberta locations.
Indeed, to fulfill the parameters of the agreement is a tall order to fill – if Black Rock succeeds in installing and operating 1 million BTC miners, the operation will run the equivalent of one-third of the current global mining capacity.
Whether they can deliver on this plan, the optimistic projections of Black Rock point to the large outflow of mining machines from China. Many miners are relocating to new stable and reliable energy sources in response to the recent Chinese crackdown.
However, the logistics of bringing such a large number of mining rigs to rural Alberta would be challenging.
To learn more about Black Rock Petroleum, please visit the website here.
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