Sangha Renewables Commences 19.9 MW Solar Facility in West Texas for 900 Bitcoin Mining

Sangha Renewables, a bitcoin mining firm focused on enabling renewable energy companies to mine bitcoin, has initiated construction on its flagship 19.9 megawatt (MW) solar facility in West Texas. The project, which aims to generate $42 million in revenue within the first 12 months, is expected to mine approximately 900 bitcoin over the next decade. The facility will benefit from a 30-year lease that provides electricity at a rate between 2.8 cents and 3.2 cents per kilowatt-hour, allowing investors to acquire bitcoin at a significant discount ranging from 25% to 50%.

Spencer Marr, the firm’s president, highlighted the strategic decision to use internal funds to purchase critical electrical infrastructure in November, even before the deal was finalized. This proactive approach ensured that the company could commence mining operations as soon as possible, contributing to the project's early success. Marr also emphasized the collaborative efforts of key partners and suppliers, including CSD Energy, EcoDigital, Moonshot Electrical, Fusion Industries, Greenhash, and Pro Mining Solutions, who have played crucial roles in the project's development.

Unlike traditional mining companies that prioritize acquiring mining rigs and securing the cheapest electricity contracts, Sangha's strategy revolves around integrating bitcoin mining into the business models of large renewable energy companies. The rationale behind this approach is to address the common issue of mismatched production and demand in green energy projects. For instance, a wind farm generating excess electricity during low-consumption periods, such as windy nights, can utilize bitcoin mining machines to convert this surplus into profit rather than selling it at a loss.

The West Texas project serves as Sangha’s pilot program, with the company currently owning the mining operation through a series of subsidiaries and purchasing electricity from the energy company. However, there is potential for the energy company to eventually integrate the mining operation into its own business model. Construction is anticipated to conclude in the second half of July, with mining activities commencing shortly thereafter. Marr noted that the project may experience a one-month delay due to unforeseen events, but the company has ordered 2% more ASICs than necessary to account for any faulty machines and ensure smooth operations.

Sangha has successfully raised $14 million through equity, partially supported by Plural Energy, which facilitates funding for mid-sized renewable energy projects from investors on-chain. This funding represents 82% of the $17 million equity round target for the West Texas project. By the fall, Sangha plans to leverage Plural Energy’s smart contract capabilities to distribute earnings to equity investors, who are enthusiastic about receiving distributions in bitcoin. This innovative approach not only supports the growth of renewable energy but also aligns with the increasing interest in digital currencies and blockchain technology.